Have you considered investing in a commercial property in Chester County, PA? There's a huge push for economic development with a proposal of $25 million to the budget.
This brings a lot of opportunity if you want to earn a lucrative income from your investment property. But before you send over your lease agreement, you have to know the lease rules.
Read on for a guide that will demystify commercial lease agreements for you. You'll know how to succeed with your commercial property once you follow these rules.
The Basics of Commercial Lease Agreements
Commercial lease agreements can follow the same template as most rental agreements. There are a few specifications that you'll need to include within a commercial lease agreement.
You must first specify the parties involved. This will specify who the landlord is and who the tenant is. The legal names and contact information should be written in the lease agreement.
You'll also have to provide the property details. This includes the address, size, and layout. Make sure you discuss the specifications and amenities the property has.
The final aspect is to specify the length of the lease agreement. You'll have to indicate the cost of the security deposit and rental fee. You can discuss whether you'll require your tenant to pay for property insurance.
Discuss the conditions of termination and renewal. You'll have to discuss the grounds for terminating the contract. You must state the penalties, if any, there will be for premature termination.
You can also outline how a tenant can renew their lease. Include the deadline when they'll have to inform you of their decision. If they don't renew their lease, outline the rules which allow you to keep the security deposit.
Additional Stipulations
Once you have the basic rules in your commercial lease agreement, there are certain stipulations to consider.
You must state what the commercial property can be used for. For example, let's say you're leasing your property to an accounting firm.
You'll have to forbid your tenants from doing anything other than accounting operations. The accounting firm can't turn into a law firm overnight, for example.
You should also include other stipulations in the lease agreement. This can include restrictions or limitations such as:
- Subletting
- Altering the property
- Permitted operation hours
- Capacity of people
- Whether furniture or amenities are allowed
Include as much detail as possible with these stipulations. Anything that isn't mentioned in your lease agreement is permissible by your tenants unless it violates the law.
Succeed With Commercial Real Estate
Now you know how to prepare commercial lease agreements and succeed as a landlord.
The basic details are the same as in a standard lease agreement. You'll have to specify your fees, renewal rules, termination conditions, etc.
Make sure you go into more detail on what your tenants are permitted to do. You can hire a lawyer to help you draft an agreement in accordance with the law.
You should also hire Key PA Property Management to help manage your commercial property. We have over 20 years of experience and are happy to help you. Contact us today!
