Locating the right commercial property in Texas is a difficult process. After finding the right type of property that is within budget and suitable for the needs of a business, it can be tempting to move ahead without taking the time to appropriately consider all aspects of the transaction. Failure to carefully consider a commercial lease agreement before signing can expose a business to financial loss and the potential for complications in the future.
What should be in a lease?
Many landlords have standard lease agreements that they offer to tenants, but each business would be wise to look carefully at terms before signing on the dotted line. Commercial lease agreements are negotiable, and a business owner will want to ensure a contract is as thorough and detailed as possible. Standard terms and details that should be in all commercial leases include:
- Rent – This includes rent amount, details of possible rent increases in the future and what is included with rent.
- Term of lease – This includes how long the contract is binding, options for renewal and possibility of subleasing the property.
- Responsibility of each party – This includes details regarding which party pays for repairs, updates and remodeling, as well as responsibility for insurance and utilities.
The more details included in a lease, the lower the possibility for disputes between parties and confusion over the terms of the agreement.
When reviewing or negotiating a commercial lease, it is helpful to have the assistance of an experienced Texas real estate attorney. This can provide important guidance when taking a significant legal and financial step. Before agreeing to terms, a Texas business owner will benefit from first seeking an assessment of his or her case.