To write a comprehensive commercial lease agreement template, follow these steps:
1. Write the Effective Date
When drafting a commercial lease agreement template, start by stating the effective date of the lease agreement. It is when the lease terms begin and become legally binding for both parties.
2. Fill in Landlord and Tenant Information
Include the landlord and tenant's full names, addresses, and contact information. This information is crucial for identifying the parties involved in the lease agreement.
3. Identify Premises
Describe the commercial property being leased, including its address, square footage, and any unique features or amenities. This information helps to clarify the property's boundaries and characteristics.
4. Describe Lease Terms
Outline the lease term, including the start and end dates or the renewal options for a periodic lease. This section should also specify any penalties or fees associated with early termination or failure to renew. Using a free commercial lease agreement by Lawrina can help streamline the leasing procedures.
5. Note Rental Terms
Specify the rent amount, payment schedule, and any late fees or penalties associated with missed or late payments. This section should also include details about rent increases, if applicable.
6. Choose Tax Option
Indicate how property taxes will be allocated between the landlord and tenant. Sometimes, the tenant may be responsible for paying some or all property taxes.
7. Discuss Past Due Payments
Include provisions for handling past due payments, such as grace periods, late fees, and the landlord's right to terminate the lease for nonpayment.
8. Note Security Deposit
Specify the security deposit amount and the conditions under which it may be withheld or returned to the tenant.
9. Enter Holdover Details
Outline the terms for handling a holdover situation in which the tenant continues to occupy the property after the lease term has ended. This section should detail any additional fees or penalties associated with holdover and the landlord's right to evict the tenant if necessary.
10. Describe Use, Occupancy, and Condition of Premises
Clearly define the permitted use of the property, any restrictions on occupancy, and the condition in which the tenant is expected to maintain the premises. This section may also include any required property improvements or alterations.
11. Indicate Property in Demised Premises
List any fixtures, equipment, or other property in the leased space, and clarify the ownership and maintenance responsibilities.
12. Enter Repairs and Maintenance Details
Describe the responsibilities of both parties for repairs and maintenance, including routine tasks, emergencies, and the process for requesting and approving repairs.
13. Discuss Insurance and Indemnification
Outline the insurance requirements for both the landlord and tenant and include indemnification clauses to protect both parties from liability for damages or injuries related to the leased property.
14. Address Signage
Provide guidelines for any signage the tenant may install on the property, including size, location, and approval requirements.
15. Choose Utility Services
Specify which utility services the tenant is responsible for and any restrictions or requirements related to their use.
16. Document Access, Surrender, and Assignment
Describe the terms for granting access to the property, the process for surrendering the property at the end of the lease term, and any restrictions on the tenant's ability to assign or sublease the property.
17. Discuss Damage to Premises
Detail the responsibilities of both parties in the event of damage to the property, including who is responsible for repairs and how insurance proceeds will be allocated.
18. Enter Eminent Domain Details
Explain the rights and responsibilities of both parties if the property becomes subject to eminent domain, which is the government's power to take private property for public use.
19. Fill in Default Information
Outline the events that constitute a default under the lease and the remedies available to the non-defaulting party, such as termination, damages, or specific performance.
Write Miscellaneous Details
Include any additional provisions or clauses relevant to the lease, such as dispute resolution methods, governing law, and entire agreement clauses.