Commercial property is a type of property that is subject to business relationships with the purpose of making a profit out of it. Unlike residential property—the one you would rent to live in—commercial property is used to pursue business goals. Thus, commercial property is divided into several types depending on what kind of business it is used for.
The three main types of commercial property include:
To rent or lease a commercial property, you will need to sign a special document called Commercial Rental Agreement.
A Commercial Rental Agreement is a real estate document that regulates the relationships between the lessor and the renter (lessee). By signing this form, both parties accept obligations regarding the property in question—its use, payments, and rental period. All of the nuances are typically discussed before the property owner (or their agents) and the renter sign the document. As soon as all the aspects of a future rental deal are approved and both sides have agreed upon each term, a Commercial Rental Agreement is created.
There are three types of Commercial Rental Agreement depending on how the future expenses will be covered:
A Commercial Rental Agreement is required for any type of commercial rental deal. This form will be necessary for the rental of commercial spaces, including (but not limited to):
With a Commercial Rental Agreement, the two parties—the lessor and the renter—will settle down terms and conditions regarding a rented property. Such terms as the price, extra expenses, the use of rental space, the rental period, etc., are subject to regulation by every commercial rental agreement.
Since each separate rental deal is a specific case, each commercial rental agreement may vary in content. However, several necessary details must always be included in each rental agreement form.
These details include:
Among other things that signees frequently add to rental agreements are:
What should you begin with if you have a property that is fit for commercial rent? First of all, you will need to take measurements of the whole area. You will need to know exactly how much space your property occupies in square feet (or square miles if you own a larger space). The square footage will be necessary for subsequent negotiations with renters so that you will know how much to charge as the rent for your property.
When you're through with taking measurements, your next step is to advertise your property. But if you already have a potential renter, this step is not necessary.
Then, you will need to show your rental area to the renter. Make sure you have your property prepared for demonstrations—the better impression it will give, the quicker you will come to signing a rental agreement. When demonstrating your rental area to a renter, don't forget to bring all the necessary documentation. A renter must be fully informed on all the legal aspects of the property. And finally, prepare to answer any questions regarding the rental space.
If the renter is happy with the place, you can proceed with the negotiation.
During this step, you and your renter will discuss all the terms of the upcoming deal, including:
When all the terms and conditions are agreed upon, you will be able to sign the rental form. Signing the form will require the landlord's signature, the renter's signature, and the signing date.