The Insider’s Guide to Commercial Leases
Leasing commercial property definitely fits under the umbrella of “high-risk, high-reward” scenarios. After all, leasing a residential property might mean you earn $1,000 per month from one piece of property. Leasing a commercial property can mean you’re responsible for a lot more money than that – and you’d better be on top of your game if that’s what you’re going to manage.
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But what if you’re coming at it from the other angle – the person looking to lease commercial property in order to have an office presence that fits your company? Either way, you’ll want to know more about commercial leases than you already do, which is why this handy insider’s guide should shed some light on the subject.<br><br>
<strong>Reading the Whole Thing</strong>
Before you ever sign anything, it’s important that you read the whole thing – and this goes for both commercial tenants and commercial property managers. After all, the commercial agreement you both sign is what’s really going to govern your relationship for the near future. What isn’t on the paper might be part of an agreement, but it will be more difficult to prove a verbal agreement.
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That’s why the entire lease agreement should be present in the written commercial lease form. And that’s why you’ll want to know every part of the agreement you sign – and make sure you have a copy for your future reference, as well.
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<strong>The Difference between Promises and Contracts</strong>
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Oral agreements and written contracts can sometimes have the same authority under law, but what’s great about a good commercial leasing contract is that it’s easy to prove its validity should some quarrel arise. That’s why you want to make sure that any promises you agree to – from either end of the commercial leasing spectrum – are included in the commercial lease form. Download a commercial lease form with a degree of customizability and this should be no problem for either of you.
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<strong>Building a Foundation of Trust</strong>
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The key to a successful commercial lease is communication that’s backed by action. A commercial tenant should live up to his end of the bargain by paying the rental terms on time – the property manager should also live up to his end of the bargain by following through on their written responsibilities. This foundation of communication and trust doesn’t only boil down to the actual written contract, but the effort made by both parties to uphold this written document.
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Because these commercial lease forms essentially form promises that are made by each side, it’s a good idea to use the lease terms as a standard of behavior in this relationship. The property manager should fulfill all of their duties and the commercial tenant should fulfill all of theirs. In a properly-written commercial lease form, these duties will be clearly defined.
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The more you read your commercial lease (and it can help to read sample commercial leases online), the better you’ll understand exactly what it is you’re getting into. As they say, knowledge is power.