Do you know what's in your commercial lease agreement? As an owner, you absolutely need to read every inch of an agreement, especially if you don't create the lease yourself.
Milwaukee, Wisconsin real estate investors rely on commercial lease agreements to make money and avoid tenant disputes.
A lease acts as the foundation of your property. Without a strong foundation, you can't expect to find success.
This guide covers what you need to know about commercial leases. Let's demystify the fiction and talk about the facts.
What's in a Commercial Lease?
Commercial lease agreements have to include certain contractual elements. A valid and enforceable lease must have the following:
- Rent price
- Security deposit
- Lease duration
Commercial leases can be tricky because there are additional costs that must be discussed between all parties.
Who will pay for property taxes and maintenance costs? The responsibilities of the landlord and the tenant must be defined in the lease.
Leave Room for Negotiation
A commercial property might be harder to rent out than a residential property. If you are struggling to find tenants, be sure to leave room for negotiation to attract more applicants.
You can work with applicants and an attorney to meet their requests while ensuring you reach your financial goals. For example, the duration of stay is often negotiable to benefit both parties.
It's ideal to work with a lawyer or property manager who understands the local laws. Milwaukee commercial leases don't have as many legal protections as other types of lease agreements.
What Are the Legal Protections?
Residential property owners have to follow local housing laws and federal laws, such as the Fair Housing Act. Commercial tenants aren't as protected but are often allowed a breach of lease when there is a health and safety issue.
Commercial properties do have to abide by the Americans with Disabilities Act (ADA). Businesses have to follow these federal laws to make their space more accessible.
Tenants are generally responsible for creating an ADA-compliant environment. However, they may negotiate terms in the lease that state a landlord needs to make upgrades to meet compliance laws.
Whether or not you accept negotiation terms is up to you as the owner of the property.
The rights of tenants and landlords are determined by the lease terms. That's why it's so important to get them right.
A landlord should include an indemnification clause to protect themselves from tenant damages. This type of clause states that a tenant is financially responsible for certain losses and damages.
Commercial Lease Agreements Done Right
Commercial lease agreements hold a lot of weight. To ensure they are done right, work with PMI Greater Milwaukee. We are a full-service real estate asset management company providing commercial property services and more.
We know that successful commercial property management starts with a strong lease. Our comprehensive suite of services includes and builds on lease management to help you grow over time.
For over 20 years, we've been helping landlords like you on the local level. Get in touch with us today to start an unforgettable partnership.
