Topic > Commercial Lease Essay - 731

A commercial lease is a written agreement for a tenant to rent a commercial property owned by the landlord. Commercial property is different from residential property. In commercial leasing the primary use of the property is for business purposes, rather than serving as a residence. Commercial leases are complex, have longer lease terms, the price of the rent also constrains the profitability of the tenant's business or other factors, rather than a uniform monthly payment. This type of rental contract also includes items such as deposits, taxes, repair obligations, construction of the premises to be rented. This type of lease is also called a business lease. Therefore a commercial lease is a legally binding contract between the owner of a property and a tenant who wishes temporary possession of the property for a certain period in exchange for money paid or other agreed services. Elements of Commercial Lease Agreement: 1. Two parties are involved in a commercial lease agreement: a. The lessor or owner of the property. The lessee or the lessee/tenant2. The purpose is of a commercial nature.3. A commercial lease agreement is usually in writing, although verbal agreements may also be valid.4. General requirements as follows: Property Address: Refers to the rented property such as a building, office space, suite, land, farm or simply an indoor/outdoor space. The premises can include not only rooms but other areas, parking, cellar or storage, roof, balconies, etc. Boundaries should also be included so that the tenant does not trespass onto other properties. Start and end dates – The duration of the lease mentioned in the agreement. The typical rental contract is annual or monthly and the amount of payments... in the middle of the paper... A rental contract provides for the rental for a short period, often 30 days, which is automatically renewed at the end of the contract . period, unless the tenant or the landlord terminates it by written notice. For these monthly rentals the landlord can modify the terms of the contract upon appropriate written notice. A written rental agreement, on the other hand, gives the tenant the right to occupy a rental unit for a set period, most often for a year but sometimes longer, provided that the tenant pays rent and comply with the provisions. The landlord cannot increase the rent or change other terms of the lease during the lease unless the tenant agrees. Unlike a rental agreement, when a lease expires it usually does not automatically renew. A tenant who remains with the landlord's consent after the lease expires becomes a month-to-month tenant, subject to the rental terms contained in the lease.