It is not easy to find commercial property that is suitable for both the operational needs of your business and your budget. Once you find a property that you believe best matches what you require, you may feel it is necessary to move forward as quickly as possible. However, before you sign on the dotted line, you may want to take the time to carefully review the terms of your commercial lease agreement. The terms of your lease matter, and they have the potential to impact you long-term.
Many Texas commercial property owners have general lease agreements that they present to prospective tenants. While this agreement could be sufficient for your needs, it is possible to negotiate other terms that may be important for the individual situation. Regardless, a commercial lease should be detailed, thorough and enforceable. You may benefit from an understanding of what terms should be in your contract.
Important details to include
Like other types of contracts, your commercial lease agreement can be specific to the details of your individual situation, unique goals and other details. As you consider a contract presented to you, or you prepare to negotiate the terms of your agreement, the following are critical to terms of the success of your contract:
- Rent amount — Your contract should outline the specific amount of rent you will have to pay, as well as explain potential rent increases. Terms should specify exactly what the rent amount covers.
- Term — A commercial lease agreement should carefully and clearly outline how long the contract is valid, options for renewal and penalties for early termination.
- Improvement and damages — The contract should include details regarding what party is responsible for damage to the commercial space, as well as which party is financially responsible for necessary changes and improvements.
The more details included in a commercial lease agreement, the less likely it will be that you and the landlord will find yourselves in a dispute that could cost you both time and money.
Don’t negotiate alone
When reviewing a contract or negotiating terms, experience in real estate law matters. Before you sign an agreement, you will benefit from seeking an explanation of your rights as a commercial tenant, what terms are most important for your commercial lease and how you can secure terms that will provide your business with security and stability for the future.