Disclaimer: This article is only intended for educational purposes and shouldn’t be used as a substitute for legal advice.
Signing a commercial lease is no joke, which is why it’s important to thoroughly read the lease, understand each term and check your rights as stated in it. You will need a commercial lease when you plan to move or renew it. Making a mistake with the lease or trusting another person’s words can cost you your rights with zero protection.
If you’re signing your first lease ever, then here’s everything you need to know about it.
Is a Commercial Lease Different than a Residential Lease?
Some people believe that commercial and residential leases are the same, but in reality, there are a few differences between them.
The concept is the same for both leases, but they are different. In a residential lease, you don’t have the option to customize a lot; however, commercial leases are highly customizable. A residential lease comes with some terms that can never be waived off even by the law, but a commercial lease does not have any restriction except for what’s written in the basic contract.
The buyer needs to negotiate the commercial lease terms after comprehensive research and inspection and make sure that it includes everything in it.
Important Terms in a Commercial Lease
If you’re signing a commercial lease for the first time, then here are some important terms in it that you must be aware of.
Double net lease –The term means that the tenant will pay rent, taxes, and insurance.
Percentage lease –The term means that the tenant will pay a percentage of their earnings or profits.
Fully-serviced lease – The term means that the tenant will separately pay for utilities along with other services.
Triple net lease –The term means that the tenant will pay maintenance, insurance, rent, and taxes.
Net lease –The term means that the tenant will pay all or part of insurance, maintenance, and taxes costs that the landlord otherwise pays. These payments are separately paid from the rent.
Opt for a Qualified Lawyer to Prepare a Commercial Lease
A commercial lease needs to be accurately made to avoid any mishaps in the future. A lawyer is a perfect option to prepare a commercial lease to ensure everything is covered.
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