There are more than 5.9 million commercial buildings in the United States. Anyone who decides to rent one of these commercial buildings or a unit in them will need to know what a commercial lease agreement is first.
Like a residential lease agreement, a commercial building lease agreement needs to be agreed upon and signed by both a tenant and landlord. This document will outline all of the requirements of both parties and will ensure that the terms are clear.
But what are the different types of commercial lease agreements, and what should you know about them in Maple Valley, WA? Keep reading to find out.
Commercial Vs Residential Lease Agreements
With commercial lease agreements, there are fewer laws in place to protect the tenant compared to residential properties. There is also less standardization among lease agreements, and each will be customized fully based on tenant rules and the landlord's requirements.
Commercial leases are also legally binding and are more difficult to break than residential leases. Long negotiations are common with commercial leases since they are flexible and can be fully customized to meet the needs of a tenant and landlord.
Types of Commercial Lease Agreements
Commercial leases fall under several categories. These vary based on rent and whether the tenant or the landlord pays taxes, utilities, insurance, and maintenance costs.
Here are the main types of commercial leases to know about in Maple Valley, WA:
- Net Lease: A tenant will pay for rent along with some or all of a property's taxes, maintenance costs, and fees
- Double Net Lease: A tenant will pay for rent along with taxes and insurance
- Triple net lease: A tenant will pay for rent along with taxes, insurance, and maintenance costs
- Percentage Lease: A tenant's rent will be a certain percentage of their sales or profits
- Fully-Serviced Lease: Utilities and other services will be included in a tenant's rent
These are the main types of lease agreements that are out there, but each tenant-landlord relationship is different. Due to their flexibility, commercial leases can be configured in a variety of other ways as well.
Important Terms to Know
Although commercial leases are all different, some standard items will typically be in each of them. Here are some of the main things that you'll see on a commercial lease:
- Names of both parties
- Location of the property
- Rent
- Who will cover the maintenance
- Security deposit amount
- Other costs and fees
- Insurance requirements
- Permitted uses of the property
By outlining everything clearly in the lease contract, both the landlord and the tenant will know what is expected from them. There may be other things that a Maple Valley lease agreement will include, however, so be sure to review an agreement carefully before signing anything.
Signing Commercial Lease Agreements in Maple Valley
Commercial lease agreements outline the requirements of both tenants and landlords, and there are many different types. Be sure to understand how they work before leasing or renting commercial property in Maple Valley, WA.
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