How to Prepare a Commercial Property Lease Agreement - Alterra Real Estate Advisors LLC

Preparing a commercial property lease agreement

Having a commercial property lease agreement is very important to protect the interests of both parties to that lease. A solid and well-prepared lease can provide legal protection along with peace of mind, as well as spell out how to handle any disputes that may come up during the lease period. The best way to get a good quality lease that will hold up to any problems that might be encountered is to have that lease prepared by a professional. Even when doing that, though, it’s important to understand all the aspects of the lease to ensure that everything important is covered to your satisfaction.

Don’t Make Assumptions

When building a portfolio of investment properties and renting those properties out, it’s important not to make assumptions. If you assume a lease will give you what you need, you could be wrong, and that can be highly detrimental to your investment and wealth-building strategies. Rather than assume you’re covered, get a professional to write your lease and go over everything with them. Let them know what’s specifically important to you so it can be worked into the lease. Not every commercial lease may cover all issues for each investor, so you have to be clear about the areas of concern you’re facing.

Clearly written commercial property lease agreement

Disagreements May Come Up

Many investor (landlord) and tenant relationships are healthy, but there’s always a chance a disagreement will start. When those disagreements appear, you want to make sure you have legal protection. A good lease can provide that and allow you to enforce that lease without fear that you’re in the wrong or that your tenant will be able to successfully sue you for incorrect treatment. Leases that follow the law and are clear and direct are the best types of leases for commercial property.

Maintenance, Parking and Subletting

With a lease created by a commercial real estate specialist, you have a higher chance of avoiding common problems with subletting, parking and maintenance. Maintenance is a big area of contention between landlords and tenants, often because tenants believe that updates or improvements equal maintenance or that problems aren’t being corrected quickly enough. Subletting is often discouraged, but no matter whether you allow it or not, you’ll want to be clear on that in your lease. As for parking, you have to be direct about where employees and customers can park so you don’t end up in trouble with the city or county since you own the building.

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Commercial Property is an Investment

Whether you purchased a small, stand-alone store or a large strip mall or office building, commercial property is often a big investment. With that in mind, you’ll want to make sure you’re protecting that investment as much as possible. There are many ways to do that, but a good lease prepared by a professional that is well-understood by you and your tenants is certainly among those ways. You’ll worry less about your commercial property investment that way, and if any problems do occur, you know you’ll be protected.

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