A Guide How to Make a Commercial Real Estate Lease Agreement

If you have a business to lease a commercial real estate, you will need to be able to create a commercial real estate lease agreement. If you are still unfamiliar with it, we will help you. In this article, we will share and inform what elements to be included.

Sample Commercial Agreement to Lease

 

Step by Step How to Write a Commercial Real Estate Lease Agreement

There are at least 5 starts that you will need to follow in writing a commercial real estate lease agreement template. The first step is to make the agreement document as well as provide a title. You can make this document using Ms. Word or other programs.

Alternatively, you can also download an editable template for this kind of agreement. After you decide what program used to make this document, you can start by making a title. The title must be able to tell the readers that this document is a lease agreement.

After you make a title, you will need to specify the needed parties. In this section, you are required to determine all parties involved in the lease agreement. In this kind of agreement, there are 2 participants. They are the property owner and the tenant.

The property owner can be called as a landlord. On the other hand, tenant is one who receives the leased property. In this step, you have to provide the details of both parties. The details may include the names, current addresses and also other contact details like phone and email.

Then, writing a commercial real estate lease agreement letter also requires you to determine the use of the leased property. It contains the clause which determines how the leased property is going to be used. Therefore, it should be stated as clear and detailed as possible.

This section implies that the tenant is not allowed to use the property for other purposes besides commerce. It must be included clearly. If it is excluded, this will imply that the tenant has the right to use the leased property for the tenant’s desired purpose freely.

Next, you will need to provide the specific security deposit. It is the amount of cash the tenant is supposed to provide the property owner as collateral. The sum is kept with the property owner just to be returned in the end of the term of the lease.

If you find damages which make the property or payment has been broken, the sum will not be returned. Because of that, you have to mention the amount of money that the tenant needs to pay for the security deposit in this lease agreement as clear and detailed as possible.

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Lastly, you will need to include the maintenance & improvement of the leased property. The clause related to it should be included in the commercial real estate lease agreement depending on what the property owner wants. Usually, this agreement does not let the tenant to make changes to the property.

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