Commercial Lease Agreement

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Upd. 31, Mar, 2023
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A commercial lease agreement is a contract specifically used to rent commercial spaces to businesses. Typically, a commercial lease form agreement contains more terms, conditions, and responsibilities for the landlord and the tenant compared to a residential lease agreement.
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Template Description

Once you start a business, it is significant to ensure that there will be no problems with a rented property. Getting a fair commercial lease is the necessary step needed to secure the successful future of your business and the rate of growth. Before rushing into signing a lease, you should ensure that you understand all the issues related to drafting a commercial lease agreement template.

What Is a Commercial Lease Agreement?

Commercial lease agreements are contracts specifically used to rent commercial spaces to businesses. Typically, a commercial lease form agreement contains more terms, conditions, and responsibilities for the landlord and the tenant compared to a residential lease agreement.

Who Needs a Commercial Lease Agreement?

Renting office space or another type of property for business purposes is called a commercial lease. Commercial leases provide very few legal protections to tenants. In contrast to residential tenants, commercial tenants usually only have the rights explicitly stated in their lease agreements.

A lease should set out clearly both parties’ rights and obligations. If the lease is longer than a year, it should be in writing, unless certain conditions are met. If a commercial lease is payable monthly – a month-to-month tenancy – the ease remains enforceable even if its term eventually exceeds a year, as there is no fixed term.

What Should I Include in a Commercial Lease Agreement?

What kind of terms should you negotiate in a commercial lease agreement?

It is important to make sure that the terms of your commercial lease fit your business needs since the terms vary widely depending on both the landlord and tenant.

How much space do you need to start your business, for example? Is it okay for your company to put up signs and other fixtures to attract customers? When you’re just starting out, do you need a long-term lease if you’re not quite sure what type of space to lease?

Consider the following commercial lease agreement checklist as you consider the types of lease terms you may need:

  • Lease term
  • Rent amount
  • Renewal options for the lease
  • Rent increases
  • Amount and terms of the security deposit
  • Inclusion of insurance, property taxes, and other maintenance costs
  • Details about all leased space
  • Permitted modifications
  • Accessibility as per the Americans with Disabilities Act (ADA)
  • Subleasing terms
  • Renewal option
  • Lease termination terms

How to Write Commercial Lease Agreements?

Tenant-landlord laws govern lease agreements. You need to read the lease agreement carefully before signing it, since it is a legally binding contract. You may also wish to have an attorney review it before you sign it.

When actually writing the lease, there are several sections that will need to be included:

  • Names of parties –– Name of landlord or property management company, as well as tenant(s).

  • Property Address –– The full address of the leased premises or rental property.

  • Term Information –– The parties agree to enter into this type of lease. Options include month-to-month, fixed-term time period (eg. one year), or a triple net lease (the lessee pays a base rent plus property taxes, insurance, and maintenance fees and is responsible for repairs to roof, foundation, and structure.)

  • Rental Amount –– The month and date on which rent is due, as well as the address where rent can be paid, will be included in the lease.

  • Late Fees –– There should be a due date and an amount that must be paid.

  • Security Deposit –– Before taking possession of the property, the tenant must pay this deposit. Renters are responsible for damages they cause.

  • Initial Payment –– Usually the tenant must pay the first month’s rent prior to moving into the property.

  • Occupants –– Even tenants who are minors or can’t sign the lease must be listed. A commercial lease identifies those with access to the space, such as employees. 

  • Utilities –– This area notes which utilities a tenant is responsible for and which will be paid by the lessor. 

  • Parking –– Parking spaces are indicated in this area. Parking spots should be listed in this section if they are reserved and designated.

  • Furnishings –– The tenant is told what, if any, furnishings are included, and what they can and cannot install (such as a dishwasher).

  • Eviction –– Tenants are informed how eviction proceedings would proceed in the case of nonpayment or another breach of the lease terms.

  • Additional Terms –– In this section, the parties list any additional obligations they have agreed to that aren’t covered in any of the other sections of the lease contract.

  • Signature and Date –– All parties should sign and date the official document.

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Frequently Asked Questions

What disclosures should be in a commercial lease agreement?

Rental lease agreements in Florida must include disclosures and information about the landlord's rights to access the rental unit.

  • State law requires the landlord or property manager to give at least 12 hours notice before entering the rental property. A landlord may only access the property during specific hours. However, there are exceptions to the 12 hours notice for landlords.
  • The landlord or their agent must be named in the Florida lease agreement. Their address(es) must also be listed.
  • Any fire protection systems are required to be disclosed to tenants if a building is more than three stories high.
  • Florida lease agreements must disclose:
    • Landlord Identity: According to Florida state law, a renter is entitled to know the name and address of the landlord or the person acting on behalf of the landlord.
    • Fire Protection: The landlord must inform new tenants about the availability of fire protection for buildings over three stories.

Radon: Certain buildings in Florida have been detected with levels of radon that exceed federal and state guidelines. Radon exposure leads to lung cancer. Florida landlords are therefore required to include a warning on every lease. Florida state law requires all rental agreements to include the following warning: “RADON GAS”.

What are my rights in regards to security deposits in Florida?

Tenants in Florida have certain rights when it comes to security deposits. Landlord-tenant laws in Florida protect tenants' rights regarding security deposits.

What is the security deposit limit in Florida?

There isn’t one. Landlords may charge whatever they like and should indicate this with the rental application. Most landlords, however, charge two months' rent as a minimum.

Where should landlords hold tenants' deposits?

There are three options available to landlords: (1) a surety bond can be posted; (2) a deposit can be placed into an interest-bearing; or (3) a deposit can be placed into a non-interest-bearing account.

Are landlords required to notify tenants once they receive a security deposit?

Yes, this is required by Florida landlord-tenant law. Notification should be given within thirty days of receiving the security deposit.

Does the landlord have the right to keep part of the security deposit?

Maybe. Renters' deposits can be kept by landlords under certain conditions.

How soon should landlords return a tenant's security deposit?

The state of Florida allows landlords fifteen days to return a renter's deposit once they vacate.

Do Florida tenants have the right to withhold rent?

Florida leases or rental agreements impose many responsibilities on landlords. Among those responsibilities is making sure the property is habitable. This includes making sure the property complies with safety, health, and building codes. Several options are available to the tenant if the landlord fails to repair, for example, a broken heater or leaky roof. If the landlord fails to maintain a habitable premise, the tenant may choose to break the lease. Renters in Florida have the option of repairing the issue and then deducting the costs from the rent. Failing to pay rent can result in lease termination or eviction.

Florida Lease Termination and Eviction Rules

The eviction process under Florida's rental laws is codified in Chapter 83 of the Florida Statutes. The landlord must serve the tenant with written notice of termination in order to evict the tenant. Tenant evictions in Florida are typically caused by the following reasons:

  • Illegal use of the property;
  • Nonpayment of rent;
  • Property damage; and
  • Health or safety violations

An eviction notice is the first step in the Florida tenant eviction process. This notice should state the reason for eviction and provide appropriate notice. If the tenant refuses to pay rent, for instance, a 3-day notice is required from the landlord informing the tenant that they must either leave or pay. In the event the tenant does not leave, the landlord has no choice but to file an eviction lawsuit in small claims court. Small claims court is an efficient, cost-effective, and quick substitute for a full-blown lawsuit. These courts do not allow lawsuits for millions of dollars. In Florida, the maximum amount for a lawsuit is $5,000.