A Standard Industrial Commercial Single Tenant Lease Agreement is a contract between the landlord and the tenant. The other name of landlord is the lessor and that of the tenant is the lessee. According to this agreement, the lessee takes the premises and pays monthly rent along with future expenses for the maintenance of the premises. Also, the lessee is expected to use the property or premises for commercial purposes only.
The agreement is also known as a commercial industrial lease agreement or single tenant commercial lease. The lease has all the primary details including details about the lessor and the lesser, details of the premises, monthly rent, security deposit and consequences and remedies in case of a dispute between the two parties.
When Do You Need a Standard Industrial Commercial Single Tenant Lease Agreement?
The purpose of standard industrial commercial single tenant lease is for a small company or business who wants an office space. The agreement ensures that both parties agree on the same obligations and conditions. The landlord or the lessor also needs this document if he wants to rent a place for commercial purposes. The agreement also includes the details of the security deposit and even consequences of any default by either of the parties.
Key Terms of a Standard Industrial Commercial Single Tenant Lease Agreement Include:
- Details of both the lessor and the lessee
- The effective date of the contract
- Details of the premises being rented out
- Rent to be paid by the lessee
- Security deposit
- Aspects of the occupation or business for which the property is being used
Inclusions in Standard Industrial Commercial Single Tenant Lease Agreement
The standard industrial lease agreement is signed between two parties, namely:
- The lessor: The landlord who wants to rent out his property for commercial purposes.
- The lessee: The tenant who operates a business and is willing to pay for the leased premises.
The effective date of the commercial single tenant lease agreement is the date from which the lessee is allowed to use the premises for commercial or industrial purposes. The contract is applicable when a lessee wants to rent a place for commercial or business purposes. It legally binds the two parties to agree upon the terms and conditions stated in the document.
How to draft a Standard Industrial Commercial Single Tenant Lease Agreement
Drafting a Standard Industrial Commercial Single Tenant Lease Agreement Includes the Following Steps:
- In the first step, the tenant sees the premises which he is going to use for commercial or industrial purposes. There is also a verbal agreement on the monthly rent.
- The next step is to apply the Rental Application form and pay the application fees.
- The landlord runs a small background check of the tenant, including his credit and criminal history.
- Next, the landlord verifies from the references provided on the application form.
- If all goes well, the landlord drafts a lease including various details like monthly rent, type of commercial activity, term, security deposit, etc. on which both the parties agree. Both the parties then sign the document.
- At last, the lessee provides with the security deposit and one month’s rent to the landlord while the landlord provides with keys of the premises.
Benefits of Standard Industrial Commercial Single Tenant Lease Agreement
While dealing with property cases, a legal document should always be filled to avoid further problems. So, here are some of the benefits of drafting a standard industrial commercial single tenant lease:
- The contract most certainly will be helpful in case the lessee does not pay the rent on time.
- Also, if there are any unnecessary replacements or damage to the property by the lessee, the landlord can take legal action.
- The contract is also helpful for the tenant if there are poorly secured entryways and unexpected shared costs by the landlord.
- The agreement also helps in avoiding the mental stress of getting sudden eviction by the landlord.
The consequences of not having a document can range from the tenant not vacating the place even after prior notice to unexpected eviction enforced by the landlord. The landlord might also be in loss in the absence of an agreement if the tenant refuses to pay rent on time.
Types of Standard Industrial Commercial Single Tenant Lease Agreement
There are four types of Standard Industrial Single Tenant Lease:
- Full-Service lease or gross lease: In this type of contract, the tenant has to pay only the rental rate of the premises. The base rent includes all the additional operational expenses.
- Standard industrial commercial single tenant lease net: In this type, the base rent does not include any operational costs. The tenant is expected to pay a portion of the operational expenses additionally.
- Modified gross lease: It is a modified version of the gross lease with some net lease properties. The tenant and landlord agree upon sharing the operational expenses.
- Percentage lease: In this type, the lessee is supposed to pay the rent along with a percentage of his revenue from the business which he is operating on the premises.
Key terms/clauses in Standard Industrial Commercial Single Tenant Lease Agreement
The various key terms and clauses included in the single tenant commercial lease are:
- Details of both landlord and the tenant
- The time of the contract
- Operating costs
- Security deposit
- Details of the occupation
Here is the sample of the single tenant commercial lease agreement. The same can be downloaded as a PDF file and can alter according to your needs.
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