What Is a Commercial Rental Agreement?
A Commercial Rental Agreement is a document used when renting commercial real estate to or an individual or business. The agreement gives the renter the legal right to use the real estate for business purposes for the duration of the term specified in the contract. Unlike a Commercial Lease, a rental agreement allows the tenant to have control of the property for a short amount of time (usually, a month). After the initial rental period, the agreement can be prolonged in both the renter and the landlord decide so.
- Commercial Rental Contract;
- Commercial Tenancy Agreement.
Download a free Commercial Rental Agreement template made specifically for your area by selecting your state from the list below or make your own agreement with our online form builder.
You should use a Commercial Rental Agreement if you:
- Own an office building, a warehouse or an industrial space and wish to legally rent it out to a third party; or
- Are looking to rent out commercial real estate from a landlord.
How to Create a Commercial Rental Agreement?
Potential renters must file and submit a Commercial Rental Application to signal their intent to rent out the property. If their candidacy is approved by the landlord, the parties will have to discuss and decide on the terms and conditions of their Commercial Property Rental Agreement. The contract, at the very least, will have to cover the following points:
- Rent Amount. Most landlords calculate the rent price based on the square footage of the leased-out space. Renters have to make sure that they are aware of what footage the landlord uses to determine the rent. Does that footage include the stairs, the elevators, and other non-usable spaces? This is especially important when putting together a Commercial Building Rental Agreement.
- Security Deposit. The agreement has to outline the specifics regarding the amount of the security deposit and the rules the renter has to abide by to get it back at the end of their lease.
- Lease Term. A rental agreement implies a short-term lease. This may be especially handy for an up-and-coming business: the rent amount will be higher, but the obligations are less strict than they would have been for a longer-term lease.
- Improvements and Modifications. The agreement has to list any improvements that can be made to the property and name the party that will be responsible for paying for them. Additionally, this clause may specify if the renter is responsible for returning the property to its original condition at the end of their lease.
- Taxes. Some property owners require that the renter pays a share of the property tax. The exact amount must be specified in the agreement for the sake of both parties.
Not the form you were looking for? Check out these related tags and templates: