Companies in Florida may go through an extensive process when they begin their search for a new location. Some will determine that it is best for the company to buy the property for their next space, but many will choose to lease their space. Companies will look at location, accessibility, price, how much control they have over the space and other factors. Once they decide on the appropriate place for their business, they will need to sign a lease agreement before they move in.
The lease agreement is a very important document for both the landlord and the tenants. All terms governing the responsibilities of both parties need to be clearly stated in the lease agreement. It is impossible to predict the future and disputes will inevitably arise. When they do both will turn to the lease to determine their responsibilities.
Essential aspects of a commercial lease
Each lease is unique based on the needs and wants of both the landlord and the tenant, but the major issues that need to be clearly stated in the lease are:
- The term of the lease
- The rent amount and how/when rent can be increased
- The permitted uses of the tenant
- Whether the tenant will have exclusive use of the space
- Who will be responsible for maintenance and renovations both inside the space and the outside of the building
- Requirements for insurance and including the landlord on any insurance policies
- Whether there will be a personal guarantee for the lease
- Process for modifying, extending or terminating the lease
- The rules for subleasing
There could be a fair amount of negotiation between the two sides on many of these issues prior to finalizing the lease. However, before it is signed by the two sides, it is very important that the full and final agreement is fully contained in the written lease. Oral agreements are very difficult to enforce.
The written lease agreement is the governing document for all leases in Florida. The lease is what will govern all future disputes between the parties. This is true not only for the discussions between the two, but also it is the document that judges or arbitrators will use to determine who is right and who is wrong in disputes. A thorough and properly drafted lease and can make these disputes much less painless and time consuming. Consulting with experienced attorneys could be very beneficial.