The term lease refers to an agreement between the user and the owner of a property. In a lease agreement, one can either be a lessor who is the owner of the asset or a lessee who is the user of the asset in question. The following is the list of most common types of assets that can be leased, these include buildings, property, and vehicles. In a lease agreement, the lessor is the legal owner of the property whereas the lessee get the right to use the property of the lessor in return for monetary payment. Besides, there are certain rules and regulation that the lessee must abide by regarding the use of the asset or property to be leased. A perfect examples of the lease agreement of the car lease where the user is instructed only to use the car for personal use.
In commercial lease agreement both the landlord and the tenant of commercial premises know their rights and responsibilities. At times people do mistake commercial lease agreement with a non-commercial one, the commercial agreement takes into account properties that are used for conducting business activities, whereas the non-commercial takes into account residential buildings. Lease agreement normally takes in the forms of retail, commercial lease and the non-retail commercial lease. The retail commercial lease and the non0rqatil commercial are different in that the retail, commercial lease, for instance, occurs when a property is used for selling goods and services whereas the non-retail lease takes into account the use of a property for not selling goods and services to the public but are used for other business purposes such as making offices.
When one wants to lease a commercial property; there are certain factors that they need to consider. The essential part in taking part in a lease in by identifying the commercial property that is being leased. Moreover , one needs to complete the commercial lease agreement then apply for the real estate lease. The mistake that most people make when taking part in a lease agreement that they do fail to evaluate the length of the lease agreement. The length of a lease agreement pays a vital role in the choice of a lease, for instance a lease of one or two years is best for a small business.
The other essential tip for commercial lease agreement is the amount that one is expected to pay. Those looking for rental properties need to first research on the cost of other commercial properties in the area so as to have a better chance of negotiating a fair price. In some case the lease may be a gross lease where other charges have not been included, in such a lease, the hidden cost may be higher when summed up to the gross lease thereby making the agreement to be costly; therefore , it is important to beware of the hidden cost before deciding to rent a commercial property.
In some cases , one may want to make some changes in the agreement, therefore, before signing in the contract , you need to be sure that the modifications are valid and if they will benefit you.