When you think of renting any commercial property, there are various basic things to consider, especially some clauses. Rental lease agreements are complex documents that enlist all the rules that should be abided by both the tenant and the landlord.
It’s important to consult the Northeast Calgary Commercial Realtors before making a final move to sign the rental lease agreement. They would give you some advice on how one should check the agreement and on what few clauses you should emphasize most.
Before telling you about the essential clauses, we will tell you about what is a commercial lease document and some important contents that should also be included in the agreement. Let’s ponder on:-
What is a Commercial Lease Document?
A commercial lease document is a legal document that contains all the details, terms and conditions of the rental decision.It is important to note that the contract is crafted for keeping the acute transparency between the landlord and the person who is getting the lease.
What are the contents of the lease agreement and basic clauses, we will cover it under:-
Important Contents Of A Lease Agreement
Lease Agreement Overview
Important Acts in the Agreement like the Rent Control Act and the Registration Act, of 1908.
Rent and Security Deposit
Tenure of the Lease
Maintenance and Repairs Norms
Use of Property
Provisions of the Acts
Landmark Case Laws
Let’s Take a Look at Some Essential Clauses of the Agreement:-
1. Name of the Parties
NE Calgary top realtors emphasize that there must be the full name credentials of the parties included in the rental agreement.
The name of the occupant and the person who is taking lease; their names must be in full length because it helps in maintaining an accurate record of the individuals inhabiting the property.
2. Term or Duration
Every commercial lease contract must include the duration of the rent up till the time the building is on lease.
This is one of the must to be included clauses in the agreement. The list also dictates the terms of the lease like the insurance coverage requirements.
3. Description of the type of premises
It’s about describing the type of building if it is the shared building or the individual one. This will include if the lease is for the entire building or some fraction of it.
This clause is essential for the co-occupancy spaces or the shared retail spaces.
4. Clause of Rental Escalation
It happens that with the time rent amount to be given is increased due to the rising cost of insurance, operational and maintenance of the buildings.
At that point of time, the owner escalates the lease amount depending on the conditions. This escalation can happen typically annually, biannually and so on.
5. Condition of the Premises
Another important term to be included in the agreement is how the premises look and its present condition.
The parties will discuss and negotiate what is required in the building to get in order and on the basis of that the rental amount to be paid.
If there is any work to be done as per the landlord’s side, then that would also be stated in the agreement.
So, here we have defined everything about the lease agreement clauses and conditions that are necessary to be adhered to. Northeast Calgary Commercial Realtors always suggest understanding these clauses before signing the contract. Also, learn about different commercial property types from the topmost realtors such as GS Mann in Calgary.