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v class="googleright">Investing in commercial properties and setting up their leases is easier than you may think. The key to doing it successfully is first understanding what will be required of you as a professional landlord, and putting this information into action. Know that and you will easily be able to recognise the distinction between residential property leases and commercial property leases.
Commercial leases themselves are fairly straight forward. You just need to make sure that it contains the following components before you sign up. All of which we shall now explain:
Parties
These are the official names of the individuals involved in your property. Namely you and your tenant. But if for example you find yourself renting out your rental property to a business, make sure that you name the business itself as the party on the lease, not the person who manages the company. Managers can change whereas companies as a whole do not.
Premises
When you invest in a property [link widoczny dla zalogowanych], and in turn rent it out, you need to be aware of the property in its entirety. It is not just a block of offices, but are individual units that can be rented out. So all premises essentially describe is the space you are renting out, for this reason within the lease you need to verify what is actually being rented out to your tenant and what space is involved.
Rent
This section of the lease explains to the tenant how the rent for your investment property has been calculated (including common area maintenance and other costs linked to the rental property). Also within this section it is not uncommon to find the phrases 'gross lease' or 'triple net lease'. At this point it is valuable that both you and your tenant gain a firm grasp of what these terms mean [link widoczny dla zalogowanych], before you continue with the agreement.
Term
All this section actually confirms is the length of the agreement i.e. when the lease begins and when the lease ends. One thing to consider here is the inclusion of 're-negotiation'. If for example you are renting out your rental property to a business, it is fair to say that at the end of the term they may want to renew their lease. With this in mind, it is a good idea to keep this option open for discussion within the lease.
Deposit
Now this one is an important one as it enables you to receive a security deposit from your tenant for your rental property. Within this section of the lease it is also important to include an agreement over what shall happen should their lease be forfeited. This ensures both security for yourself and your tenant.
Hold Over
This term you may be less familiar with [link widoczny dla zalogowanych], but all it actually represents is an overview of what will happen should your tenant choose to not vacate the property once the lease ends.
Use/Restrictions
It is important to know what your commercial property is going to be used for. After all the last thing you want to find out is that your tenants are committing illegal actions there. So within your lease make sure there is a reference to this stating what can and cannot be used in terms of signs, hours of use, limits on occupancy and sub-leases within your property.<br