Commercial property lease and its type

Getting a lease for a commercial property is very tiring task. There are lot of requirements negotiations terms and clauses to consider. It is very hard for a person who is new to these legalities to understand the requirement to get a commercial lease. It is important for you to contact with a professional and experienced real estate agent if you don’t have any knowledge of the matter. Still there is a need for you to have the basic knowledge for commercial lease so that you can make sure that your hired person is doing the right thing. Usually the owner of the property has a legal firmed or a solicitor hired to work on his behalf but the person who want the lease who is known as tenant stand for himself.

There are terms that should be put from tenant side for owner. These terms are that the property should make the most contact with customers, the rent should be reasonable, tenant should have right to expend the building for need in future if he want to, the costs should be calculated with rent. But the owner will have different things to consider such as he will go for a tenant who will be willing to pay as much as the owner wants or close enough to demanded payment. People who will be careful while using the property. Owner will want to end the lease if the tenant will not be able to pay the rent.  

It is important for owner as well as tenant to bind a contact that has words clear enough for both to understand, and there isn’t any hidden meaning of any clause. A contract that will be profitable for both owner and tenant, and their investment will be as protected as it can be.

There are different types of leases a person can get for a commercial property.

In net lease tenant will have to pay all or some of the expense for reconstruction or maintenance of the property. In this type the owner can ask as much as he wants. This type of lease can be differ according to the location of the property as well as the how good both parties are in negotiation and bargaining.

Then there is gross lease. The owner will pay for the expenses such as janitorial and security costs, insurance, utilities, from the amount of the rent that he has got from tenant. The owner will have to pay all the expenses and the tenant will give him only the amount of rent.

A percentage lease in which tenant will have to pay the owner a fixed percent of amount from the profits. It does not mean that there will not be any amount of rent. There will be a fixed amount as well as the commission but the fixed amount will be less. In this lease the tenant will have to pay the expenses.

In absolute net lease the tenant will have to pay all the expenses for maintenance without any negotiation.

The lease of the property will be for a limited time period not for always. It is important for both parties to read and understand all the documents carefully, and they should also have the copies of the contract. It very important to fully understand the types of lease, before signing the contract.