After you have found a location for your business, you will want to get it locked down by signing a lease. A clear and concise lease offers protections for both landlords and tenants. By having terms clearly spelled out and understood by both parties, the chances of a dispute arising are greatly mitigated.
In a previous post, we discussed the importance of common provisions typically contained in commercial real estate leases. In this post, we will look at some of these provisions in greater detail. The following are some of the important provisions that can provide protections for landlords and tenants:
- Terms of the security deposit. These terms can include the amount the tenant is to pay, where the deposit will be held and if it will collect interest.
- Terms regarding tenant improvements. This includes if the tenant is granted the permission to make improvements and the extent of those improvements.
- An escalation clause which accounts for rent increases, which may be applied over specified periods of time and are based on pre-established criteria.
- An explanation of renewal options. This provision clarifies whether the tenant will have the option to renew a lease upon its expiration and the terms of the renewal.
It cannot be overstated how important an in-depth commercial lease is for all parties involved. And before you sign, you need to understand all the rights and responsibilities that are enumerated in the document.
By having a commercial real estate litigation attorney help you go over the terms of the lease, you will be able to make an informed decision before signing on the dotted line. But if you have already entered into an agreement and are in a dispute with your landlord, the attorney could assess your lease and offer guidance on steps you can take to have the situation resolved.