In many cases, a Lease Agreement is like an advertisement to a prospective Tenant; if it is fair and equitable, a Tenant is likely to lease. If not, the Tenant may bring business elsewhere. On the other hand, a Commercial Lease Agreement must also secure the Landlord’s interests in protecting the property.
An experienced commercial property attorney can help strike a balance by writing a Lease to appeal to lessees without removing them from fair obligations and responsibilities. Furthermore, experienced counsel can make key edits to a Landlord’s Master Lease Agreement that will make the Lease more palatable to a Tenant.
In commercial property tenancy law, Landlords do not have to abide by residential property principles and often have the upper hand:
- Before a Tenant settles into the property, you should do an inspection so you can hold that Tenant responsible for any damage done during their tenancy.
- Many times, the damage is paid for by withholding the security deposit. Since Minnesota law doesn’t limit the deposit amount a Landlord may require from a Tenant, you can require what you feel is necessary.
- You can also increase the security deposit amount any time during a “periodic tenancy,” which is a rental agreement in which there is no mention of an end date. Written advance notice is required in this case.
- You have a right to forbid subLeases and are not held to the privacy protections of entry. You may also restrict the use of the property.
- Landlords are also not always required to repair and deduct for property defects and may often shift maintenance responsibilities to the Tenant.
- You also have the right to do a background check to ensure the party requesting to rent the property will not possibly use the property for illegal activities or will treat the property badly.
Each Lease Agreement that you make or undertake will be unique since there are, generally, no standardized commercial Leases. Terms to include are the amount of the rent, the length of the Lease, who is responsible for paying the utility bills, property restrictions, waivers, and maintenance obligations. These terms are also intensely negotiated.
There should also be a provision that outlines any key specifics for the unique nature of the Tenant. Sometimes the most contested issues are those related to the business mix and can entail negotiations with other Tenants within a commercial property.
Consider reading our recent article entitled “Three Often-forgotten Terms in Restaurant Leases.“
Contact a Minnesota Commercial Leasing Attorney
If you are a Landlord or Tenant and you need assistance discussing the leasing process, this site’s sponsor, Vlodaver Law Offices, LLC, can help you. They can draft contracts, help ensure enforcement, and even negotiate Lease terms on your behalf. Over the years, they have gained experience working with commercial property brokers to sign amicable Lease Agreements for both parties. Whatever your need, contact Vlodaver Law Offices, LLC for a free consultation.