Commercial leases can significantly impact how a tenant or landlord operates their business. Vague details left undetected after signing the contract can lead to disputes over time, potentially resulting in losses or damages for both parties. Fortunately, they can address these concerns by indicating specific timelines when the tenant and the landlord can revisit the lease to discuss terms and changes, adjusting them if appropriate.
When going through the updated agreement, both parties should pay close attention to components that can impact them financially, including the following:
- The rent amount – The landlord may increase the rent for many reasons. However, explanations behind the difference must be clear, especially if the amount does not match the tenant’s expectations based on the previous lease terms.
- Essential timelines related to the lease – These dates can include renewals and other deadlines.
- Provisions involving rent reviews – Some commercial leases have conditions that may bring about market rent reviews, which can affect the rent amount if applicable.
- Rights and responsibilities – When discussing changes in the lease agreement, it can also be beneficial to review updates concerning rights and obligations, including who will shoulder additional costs. Verifying this information can help define existing and new commitments.
Additionally, tenants and landlords can refer to their prior lease agreement to determine what to highlight when revisiting the contract.
Having an effective commercial lease agreement
Sometimes, there could be much at stake when entering or maintaining a commercial lease, primarily if the tenant’s business operations depend on the location. Regular contract reviews and open communication can be necessary to protect both parties. Revisiting the agreement may also be vital to prevent issues and keep the setup beneficial to both the landlord and the tenant.