When entering into a commercial lease agreement, there are certain provisions that are highly desirable as a tenant. Making sure that these key clauses are present in the contract will help you protect your business interests.
Here are some important lease elements that you should pay attention to before signing on the dotted line.
Description of the premises
A clear and detailed description of the premises in question is essential. This should include the address, square footage and any specific areas or amenities included in the lease. For example, the lease should specifically mention any parking spaces or storage areas.
Term of the lease
The term of the lease specifies the duration of the lease agreement. The landlord should clarify whether the lease is for a fixed term or if it automatically renews at the end of the initial term. Additionally, be sure to understand any provisions related to early termination or renewal options.
Use of the premises
The permitted use clause defines how you may use the leased space. Make sure this clause aligns with your intended business activities and any applicable zoning regulations. It is also important to understand any restrictions on alterations or improvements to the premises.
Repairs and maintenance
Make sure to discuss the responsibilities of both the landlord and tenant regarding repairs and maintenance of the property. This should include provisions for routine maintenance as well as procedures for handling major repairs and emergencies.
Assignment and subletting
Understand whether you have the right to assign the lease to another party. This can be important if you need to relocate your business or downsize before the end of the lease term.
The Massachusetts Office of Consumer Affairs and Business Regulation outlines the core tenant rights afforded to all commercial leaseholders in the state. Beyond these basic rights, though, negotiating for other favorable conditions in your lease contract can make all the difference for your business.
