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What are some common clauses that should be included in a commercial lease agreement to protect my business?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I can provide some advice on common clauses that should be included in a commercial lease agreement to protect your business. These clauses include:

  1. Rent and Lease Term: The agreement should clearly state the rent due, how and when it is payable, and the length of the lease term.
  2. Security Deposit: The lease should require the tenant to provide a security deposit to cover any damages incurred during the rental period. The lease should state the amount of the security deposit, how and when it will be returned, and any deductions that may be made.
  3. Maintenance and Repair: The lease should clearly define the landlord's and tenant's responsibilities with respect to maintenance, repairs, and replacements.
  4. Use of Premises: The lease should clearly define the intended use of the premises and prohibit any unauthorized use. The tenant should also agree to abide by all zoning and other ordinances and laws.
  5. Alterations and Improvements: The lease should clearly state whether the tenant is allowed to make any alterations or improvements to the premises and if so, what procedures must be followed and who is responsible for the costs of such improvements.
  6. Insurance: The lease should require the tenant to maintain appropriate insurance coverage to protect both the tenant and the landlord.
  7. Indemnification: The lease should require the tenant to agree to indemnify and hold harmless the landlord from any and all claims arising from the tenant's use of the premises.
  8. Termination and Default: The lease should clearly define the circumstances under which the lease may be terminated and the consequences of default.
  9. Renewal and Right of First Refusal: The lease should define the tenant's right to renew the lease and the landlord's right of first refusal in case the tenant decides not to renew the lease.

These clauses are not exhaustive, and other factors may need to be considered depending on the specific circumstances of the lease. It is important to have a qualified attorney review any commercial lease agreement before signing.