COMMERCIAL LEASES

Commercial Lease Documents Review Process

To protect yourself from potential disputes, costly issues, and lawsuits that can arise as a result of an unclear or unequipped lease agreement, it is essential to have the contract reviewed by a qualified Encino commercial lease attorney. This legal professional should be adept at comprehending your business’s intentions, objectives, and requirements. They will examine the commercial lease to guarantee its adequacy so that it does not bring about any additional complications to your operations. No two commercial lease agreements are identical, but there are still some standard elements that must always be reviewed. These can include:

Parties Clause Of The Lease

When it comes to a lease agreement, the parties involved can be easily mistaken. For example, if an entrepreneur signs their lease in their own name rather than on behalf of the business itself, they are opening themselves up to personal liability for any debts accrued by the company.  Even if the lease is in the business’ name, if the signer grants a personal guaranty, they can still be liable for all of the tenant’s obligations under the lease.  To avert such potential missteps and safeguard yourself against future complications down the line – do take caution when signing off on contracts.   

Premises Clause Of The Lease

Depending on the kind of space and the terms in the lease, various levels of detail may be needed to accurately describe your physical leased premises. At times a street address might suffice; other times you will need to list out all rooms and amenities that your business is allowed access to use.

Rent Clause

When it comes to renting clauses, everyone worries about the amount of money they’ll have to pay. However, these clauses also cover a range of other topics that are equally as important. This could include the due date and payment method for rental fees along with responsibility for any additional charges such as those covering common areas. All of this should be crystal clear in your rent clause before signing anything.

Alteration & Improvement Language

When a business moves into commercial space, changes are often necessary in order to customize the design and décor. In some cases, the premises may even be unfinished. These provisions clarify who has permission to make such alterations as well as any other related details regarding this process.

Exclusive Use Clause Of The Commercial lease

When pursuing a commercial lease, it is imperative to pay close attention to the use clauses and exclusive use clauses included. Use clause language should detail how you can utilize your space as well as any exclusivity considerations for goods or services provided by the business in that building. An accurate review of this information is essential for making an informed decision about the agreement.

Frequently Asked Questions

What Is An Unlawful Detainer?

Also known as “eviction,” is a complex legal process that landlords enact to remove tenants from their leased properties. In California, commercial property owners must adhere to specific laws when filing an unlawful detainer dispute for eviction purposes; disregarding this protocol can result in serious consequences.

What Types Of Commercial Leases Are There In California?

California offers three distinct commercial leases: gross, net, and modified gross. Each of these lease types provides unique advantages and drawbacks to consider when deciding on the best option for your business needs. 

1. Gross Lease – With a gross lease, tenants pay the landlord a set amount for the utilization of the property and all related expenses paid by the property owner – including insurance premiums and real estate taxes.
2. Net Lease – A net lease commences with the tenant responsible for a flat fee paid upfront, but additional costs may be included. Specifically, in single net leases, the rent and property taxes are both to be covered by the tenant while double net leases extend to include insurance liabilities too; finally, triple net leases entail payment of rent, property taxes, insurance premiums, and maintenance fees as well.
3. Modified Gross Lease – A modified gross lease is a frequent option for office buildings and other shared rental spaces. Apart from the standard rent, tenants may also be responsible for their portion of expenses like taxes, maintenance fees, utility charges, and insurance premiums – typically in direct proportion to their share of the leased space.

Contact Our Encino Commercial Lease Attorney Today

If you are hunting for a commercial lease or writing one of your own, taking the time to carefully review and understand your agreement is absolutely vital. Our experienced Encino commercial lease lawyer at Haber Law Firm, APC, can help examine your contract thoroughly, making changes that will protect against potential litigation or disputes down the line. Connect with us today by calling 818-900-6317 to book an appointment for your free consultation and to learn more about how we can help you and your business.