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Lease Contract
This firm does not represent consumers or landlords on consumer leases
and so only addresses commercial leases in this section. A lease contract
is an important contract and often the most important contract a business
will sign. Its terms can be the subject of great expense and liability
and often the subject of great personal anxiety; for the renter, its terms
can greatly affect the circumstances of the day-to-day environment. Therefore,
much care should be put into the terms of a commercial lease whether you
are the landlord or the leasee.
Great thought should be put into the terms. Before signing a lease, at
a minimum sit down and think about each of the following checklist items,
item by item. Send this list to the prospective tenant/landlord and use
it as a framework for negotiating.
- Define and describe the premises
- Define and describe the common areas that will have access to
- Lease commencement date
- Lease term
- Base rent
- Security deposit
- Taxes and operating charges
- Base rent escalations
- Rent abatement
- Improvements
- First year space
- Expansion option
- Specifications for signs including placement and size
- Parking
- Moving allowance
- Renovation allowance
- Extension option
- Early possession
- Subletting assignment
- Assign lease if sell the business
- Storage space
- Floor load
- Overtime HVAC
- Building access
- Building security
- Building maintenance and cleaning - who pays and how will the building
be maintained
- HVAC system
- Who pays for what insurance
- What building will be used for, i.e., who else can move in
- Compliance with laws and regulations
- Non-disturbance (so tenant will not be evicted if landlord goes
broke)
- Quiet enjoyment
- Environmental conditions
- Fiduciary duty to tenant
- Disputes submitted to a mediator or arbitrator
- Termination notices.
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