Essential Elements of an Office Lease
The key to successful negotiation of a commercial lease agreement is having a clear-cut office lease agreement. If it is your first time to be involved in commercial real estate, then it can be a little overwhelming. Commercial property management is much different than residential and a commercial lease can be long and full of unfamiliar terms.
The good thing about a commercial lease though – it’s negotiable. Parties are free to put forth their terms and negotiate conditions that are best suited for their business to grow and prosper. It is only when an agreement as to the terms of the commercial lease is reached, that it is signed.
What to Include in an Office Lease
To become the best commercial property manager, you need to know the basic content of an office lease. An effective office lease starts with identifying: who, where, when, what, and how. The answers to these questions can then be considered the building blocks of any successful rental agreement.
The Parties Involved in the Lease Agreement
Every lease agreement must clearly state the parties and responsibilities of those parties who are involved. Lease agreements are usually between the landlord or agent and the tenant. The names of all parties must be included, as well as their contact information and addresses.
Identification of the Property
The complete address should be stated in the lease clause of the agreement. A property manager should be able to complete this clause for the tenant. In some cases, a description of the property to be leased is included as well.
The term of Office Lease
The agreement should state the exact date the lease begins and the exact date the contract will end. It must also be included the certain rules in maintaining the property— you can ask from the experts at air conditioning service Gilbert AZ.
Amount of the Office Lease
It’s essential to include the full amount of rent in the commercial lease agreement. For more clarity, indicate the due date for the rent, the preferred method of payment, and any late payment terms and charges if needed.
Acknowledgment of the commercial lease agreement is when both parties have reviewed the agreement and signed and initialed every page of the agreement. It’s important to include the acknowledgment on the agreement as this is the part of the contract that makes it legally binding. Without the signatures, the agreement will be worthless. Once signed, the property manager must provide the tenant with a copy of the agreement.