Are you getting ready to sign a commercial lease agreement? Have you hired a lawyer to review it with you? Signing a commercial lease is a big deal, and there are important aspects you need to be aware of and certain terminology to look out for. Our team at SCC Legal will explain some of the most important parts of a commercial lease below, as well as how you can avoid entering a bad agreement.
The Rent Due
A commercial lease will state clearly how much the rent is in US dollar amount, on which days it’s due, and how the tenant must pay it. A common time frame for a commercial lease is three to five years, after which the landlord will probably want to negotiate a small rent increase in line with the market. If you’re the tenant, ensure you’re clear on how much you must pay, the exact dates you must pay, and how you pay.
Clauses To Look Out For
- Service charges clause: This clause is separate from the rent, and usually covers the costs of any upkeep and maintenance that the property owner must do on a regular basis.
- Indemnity clause: This clause protects you from being held liable for any negligence or willful misconduct by the landlord.
- Insurance clause: The landlord usually has their building insured, but additional insurance clauses stipulate which party is responsible for other items and areas on the property.
Is There A Break Clause?
A break clause means that the lease can be terminated earlier than stated in the contract, on a date that both parties agree to. For example, with a one-year lease agreement, there will typically be a six-month break clause where the tenant can end the lease early if they wish to do so.
What Are The Tenants’ Obligations?
As a tenant, you must be fully aware of your obligations while you occupy the property. Typical tenant obligations include keeping the property clean and in good working order, reporting any damage or maintenance problems to the landlord, and maintaining the lawn or garden area on the property.
To ensure you don’t enter a bad commercial lease agreement, it’s best to consult an attorney with plenty of experience in this sector. They will know exactly how to amend each clause to make certain that your best interests are legally protected. For legal guidance with your commercial lease agreement in New Jersey, or if you have any questions about the terms and conditions of your lease, contact our team at SCC Legal today or visit us at: https://www.scclegal.com/
