Q:

What should you look for in a commercial lease agreeement?

A:

Quick Answer

A commercial lease agreement must contain basic information about the agreement, such as the base amount of rent, the security deposit amount, the rent's due date, the term of the lease, allowable rent increases with calculations of increase amounts and any amenities. The lease also needs to include a full description of the property, including the number of parking spaces allowed for tenants and customers, according to Intuit Quickbooks.

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Full Answer

The terms and conditions of a commercial lease agreement should also include explicit details concerning rules about how the tenant may use the property. Businesses wishing to advertise with signage should check to ensure that the lease allows signs to be placed on the premises. According to Nolo, landlords can specify what type of signs are allowed and where tenants can place them. If any improvements or modifications to the space are required, this must also be included in the lease.

Property maintenance is a major consideration for both tenants and landlords. Intuit Quickbooks notes that the maintenance and code compliance section must state who is in charge of maintenance. There are specific local and state safety codes that must be followed. Lease terms state whether the landlord or tenant is responsible for keeping the premises up to code by making repairs when needed. It is important that the lease specify which party pays for required upgrades after an inspection.

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