Why your Attorney should review your Commercial Lease

A Florida commercial lease is a contract between a landlord and tenant for a tenant’s use of commercial property. The commercial lease agreement Florida sets out the terms and conditions of the tenancy, including without limitation, the length of the lease, the amount of rent, the obligation for the payment of any additional rent, and the various responsibilities of each party. Commercial lease in Florida are typically longer than residential leases, and the rent is usually higher. Commercial leases may also contain provisions for renewal or termination of the lease.

When you are a commercial tenant, as a business owner, you will want to ensure that your commercial lease is in order and that it meets your needs. The last thing you want as a tenant is to sign a lease then to find out later that it is not enforceable or that it does not adequately protect your interests. That’s why it’s so important to have an Orlando commercial real estate lawyer review and negotiate the terms of your lease before you sign it.

Commercial lease complications

One of the most common complications that may arise out of commercial lease agreements is the issue of allocating responsibility for the payment of any taxes that may be due and owing. For example, in many cases, the tenant is contractually responsible for paying the local tax collector for the property taxes owed on the leased premises. This can be a significant expense, particularly if the property is located in a desirable area with high property taxes, which is why it is so important to ensure that each party’s responsibility for the payment of taxes is addressed at the time that the parties are negotiating the terms of the lease.

Another potential complication is the issue of insurance. In some cases, the landlord may require the tenant to obtain insurance coverage for the leased premises. This can add a substantial cost to the tenant’s overall business expenses, so it is recommended that a tenant confirm whether insurance will be a tenant obligation and the estimated cost for same before entering into the lease agreement.

Additionally, another potential complication is that there may be prohibitions against how the leased premises can be used. For example, the lease agreement may stipulate that the premises can only be used as a restaurant and may include a prohibition against any other use of the property in connection with the lease. As you can see, these types of restrictions can limit the tenant’s ability to fully utilize the leased premises, which is why it makes best sense to negotiate a lease that adequately address your business needs.

Your commercial real estate attorney Orlando can make sure that the commercial lease is valid, that it addresses the mutually agreed upon terms, and that it conforms with all applicable laws. He or she can also negotiate with the landlord on your behalf to ensure that your proposed terms and conditions are addressed in connection with the preparation of the proposed lease.

What to look for in a commercial lease

A commercial lease agreement should include the following:

-The names of the landlord and tenant

-The names of any personal guarantors to the lease

-The address and legal description of the leased property

-The square footage or rentable area of the leased property

-The term of the lease, such as five years or ten years

-The lease commencement date

-The terms for any renewal of the lease

-The amount of rent and how it will be paid, such as monthly or yearly

-The payment of any security deposit or additional rent that may be due under the lease

-The purpose of the lease, such as the leasing of office space or retail space

-The respective responsibilities of the landlord and the tenant, such as who will be responsible for any repairs or maintenance of the property under the lease

-Any restrictions on the use of the leased property, such as no gambling or no sale of offensive materials

-The consequences of defaulting on the lease, such as eviction, loss of the security deposit or damages

Your attorney can help you understand all the terms of the lease and make sure that they are fair. He or she can also negotiate with the landlord on your behalf to get the terms that you want.

What your attorney will check for

When you have an attorney review your commercial lease, your attorney will check for several things. First, they will make sure that the lease is enforceable, that it addresses all material terms, and that it conforms to all applicable laws. Second, your attorney will negotiate the terms of the lease with the landlord on your behalf to get the terms and conditions that are more favorable to you. Lastly, your attorney will help you address resolve any problems that may arise in connection with your tenancy during the term of the lease.

An attorney can help you understand all the terms of the lease and make sure that the proposed terms are favorable to you. He or she can also negotiate terms within the proposed lease with the landlord so that the terms are in line with what you want. This is why it is recommended that you hold off on signing a commercial lease until you have had a real estate attorney review it!

If you are thinking about leasing commercial property in Florida, be sure to have an experienced attorney review the lease agreement before you sign it. Nishad Khan P.L. can help you understand the terms of the lease and make sure that such mutually agreed upon terms are fair and adequately protect your interests. Contact Nishad Khan P.L. today to get started.