Investing in commercial real estate can be profitable, especially when you manage to rent it out to good tenants. However, there are numerous factors to consider when doing this, and you’ll want to draw up watertight commercial lease agreements before moving forward, as doing so can help you to safeguard your interests as your situation evolves.
What concerns should your commercial lease agreement address?
The price
Your commercial lease agreement should clearly outline how much the tenant will be paying, and when that payment is due. Will the tenant have to pay a security deposit? You’ll also want to include details about who is responsible for extra and unexpected costs. For example, who pays the taxes and who pays for building repairs?
Defining the use of the property
There may be some activities that you do not want to occur in your commercial property. For example, you may not want any business activities that could damage the building. Or, you may not want a noisy or high-pollution business to upset people in the location. You can specify activities that you want to prohibit in the commercial lease agreement.
If you own multiple properties in the area, it may also be important to your tenant to include an exclusive use clause. This means that other properties you own in the area cannot be leased to rival businesses. This concern is a common source of legal disputes between landlords and tenants, and it’s important to avoid it if possible.
Casualty provisions
Florida has seen some extreme weather in recent years, such as storms, hurricanes and flooding. Casualty provisions in your commercial lease agreement can outline what will happen should a natural disaster occur. For example, you may need to terminate the lease so that repairs can be carried out.
To better ensure that your commercial lease is protecting your rights as a landlord, it will benefit you to seek legal guidance. We help business owners in Florida draft lease agreements and settle disputes. Contact us today for a consultation to learn more.