When you rent a property for the purpose of conducting business, you will sign a commercial lease with the landlord. Before you put your signature into writing, though, there are certain items in the contract that you should double-check.
Serious real estate disputes can arise if either the landlord or tenant neglects to know and uphold the terms of a lease. That is why you should look over the document carefully and ensure that the contract is not weighed heavily against your interests.
1. Repair obligations
In many cases, a landlord is responsible for structural repairs on the property. Be watchful for ambiguous wording in your lease that the other party might use to circumvent their obligations. You also have the right to negotiate if you feel tenant maintenance requirements are unreasonable.
2. Terms of transfer
Your lease should include details on what you can do if you decide to leave the space or close your business. Typically, a commercial tenant can either assign the lease to a new business outright or sublet to a new tenant while still being responsible for making payments to the landlord. It is very important to know if you will continue to be on the hook for rent even after vacating the property.
3. Exclusivity clause
When reviewing the terms of your lease, make a special note of whether or not the document includes an exclusivity clause. This section of a commercial lease states that the landlord can not rent to a competitor within the same industry as you.
Before signing a commercial lease, you should always make sure that the document respects your basic rights and obligations as a tenant according to the Nevada Revised Statutes. You can also discuss additional terms with your landlord until you reach a mutually beneficial agreement.