Things To Look Out For In Your Commercial Lease Agreement

Posted by Carl Glendon on July 13th, 2019

A simple commercial lease agreement is a great way to get you started with your business plan. However, it is very important that you go through the fine print carefully and read each and every clause. There are certain clauses you should never agree to as they can get you in trouble later on or at least unnecessary hassles.

Here are some of the things that you need to look out for when you are looking to get a commercial lease for a property that you can use for your business.

Renewal Clause

In most cases, the leases last for at least one year or more. After the term is completed, the rent is calculated on a per month basis. For some cases, there can be a clause that allows you to stay in the same space with the same kind of terms and conditions. The renewal can be optional based on mutual agreement or automatic. The automatic renewals can extend the lease period for a specific time as stated in the agreement unless you provide with a notice for non-renewal. Make sure that you go through the renewal clauses and never miss the deadlines associated with the payments and notices. For more information about getting a commercial lease agreement, please visit this website.

Acceleration Clause

A standard commercial lease agreement is also going to have an acceleration clause which allows the landlord to ask for the whole balance of unpaid rent for the remaining period of the term. Typically the landlord collects regular monthly payments once they become due. However if some of the payments are not made in time, the acceleration clause enables the landlord to work on mitigating the losses and demand the payments in advance. Unless the payments are not made in such cases, the landlord may even approach the court for that. So it is very important that you read through this clause carefully if it is there. Please visit this website for more info about legal forms free.

Author Resource:-

Carl writes often about legal drafting, rental & commercial lease agreements, power of attorney, Bill of Sale and help the people in such document needs. You can find his thoughts at free legal contracts blog. Please visit this site to get a sample commercial lease agreement in Kentucky.