What is Commercial Rent?
Commercial rent is a form of legally binding contract made between a business tenant - your company - and a landlord. The lease gives you the right to use the property for business or commercial activity for a set period of time. In return for this, you will pay money to the landlord. The lease will also outline the rights and responsibilities of both the landlord and the tenant during the lease period.
What provisions are dealt with in a commercial lease?
Typically, a commercial lease will cover the following matters:
- The type of property being let
- The address of the property
- The length of the tenancy, and whether it is a fixed term or a term that can be renewed periodically
- The amount of rent charged, and when the rent will be paid
- Which types of business can be carried out in the property
- Who is responsible for any leasehold improvements
- What the provisions are of the security deposit
On some occasions, the commercial lease may also cover these areas:
- The provisions for lease renewal
- Any improvements the landlord is responsible for
- Any improvements the tenant is responsible for
- Whether subletting the property is permissible
- What notice provisions are offered for termination of the tenancy
- Who is responsible for managing the insurance of the property
Which parties are involved in signing the lease?
There are two main parties: The landlord, otherwise known as the lessor You, the tenant, otherwise known as the lessee In some cases, the landlord may request a guarantor or a surety: this is a person who agrees to pay any losses directly to the landlord if you become unable to pay the rent or breach the tenancy agreement in another way.