The Most Important Points in a Commercial Lease - Essay Example

The 'Business Points' identifies the various aspects such as the parties of the owner and the tenant, the said building, or the said property which is to be leased. Exact details of the property need to be provided and the building should be exactly identified in which the tenant will rent the space. It is also imperative to accurately describe the floor, location, and the square footage of the property. The provisions further mention the dates of the date of effect and the expiration (term) of the lease and in accordance with this term, the rents can be specified with the optional mention of renewal terms.

Additional expenditures which can include operating expenditures and other real estate taxes exercised by different authorities need to be discussed and it needs to be clarified if the total rent includes all such expenditures. Another important service issue is parking. It is normally expected to accompany the specified rented place but might not be the same in every case. Therefore it becomes an important clause in the contract for commercial lease. Further, if any improvements and modifications are made which includes permanent changes in the property, like the work of retrofitting, repairs, paint and the addition of immovable furniture is done, then who will be liable to pay for such enhancements needs to be stated.

If the tenant requires installing special trade fixtures in demised property, then it should be mentioned that such installation is allowed. The 'Standard Lease Provisions' specifies other general issues like the use of the building and the purpose of lease. The user restrictions are at times provided and at the will of the parties, they can also be excluded. The user restrictions may impair the tenant's intended use other than the specified one. Further specifications of the services also need to be made.

Services such as janitorial, utilities, and maintenance provided by the owner and need to be specified if it is included in the rent or in the additional rent charged to the tenant. Hence it must be determined what cost is the tenant obliged to pay. If at all relocation needs to be done during the period of the lease, it needs to be specified whether the expenditures of relocation are supported by the owner of the place, partially or fully. An important clause also forms that the tenant should have the right to terminate the lease of the building or any part of it is condemned to the extent that the tenant can no longer enjoy the demised premises.

The events such as default when the rent is not being paid or the occupied property on lease are destroyed form important clauses and at times considered to be non-negotiable in the contract. The business points form a very crucial part to be accurately reflected in the lease. When a commercial lease is agreed upon in between an owner and tenant appropriate negotiations need to be made regarding the above-mentioned aspects as they determine the important functions of the usability of the property.

The act and its various clauses under which the property is leased should be mentioned to deal with discrepancies in the future if at all produced.