When you work in real estate, one of the things you may have to do is negotiate a lease of your commercial property. Doing this correctly is vital for protecting your property and rights as the owner.
Shockingly, there’s no standard way to make a commercial lease agreement. If the commercial real estate market is poor at the time when you try to lease, you may want to give your tenants a break on costs, or perhaps you want to add extras. In a good economy, you may want to raise the cost of your rental or lengthen the lease’s overall agreement period.
What you do with your lease will be up to you, but your attorney can help you make sure the lease is ironclad. The last thing you want to find out is that a tenant who hasn’t been in the property long found a loophole for breaking the lease, or that you’re paying out more to care for the property than you’re making.
It would be normal to ask for a rental price increase around every 12 months or longer. Maybe the market changes, and it’s now a property that is worth more. In that case, you can draft a new lease agreement that your tenant has to sign. The length of a lease may also be negotiated and included in your legally binding contract with the renter. Long-term tenants are usually desired, and may have to resign only every few years if you design the right kind of lease.
Our website has more information on what to do when you want to create your own lease. Take the right steps and make sure yours is appropriate and in your best interest.