Commercial Lease Laws

Commercial Lease Laws


Commercial Lease Laws

As in many other states, commercial tenants in California are not legally afforded the same rights as a residential tenant. A commercial tenant does not own the actual land of their property, they only own their business; therefore, given the financial nature of their tenancy, they must make sure they have signed the proper lease contracts. The commercial lease contract establishes the conditions of the lease, and can set out the limited rights a commercial tenant may have.

Signing A Commercial Lease

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The commercial lease is one of the most important parts of running a business. The business owner, or tenant, only has rights as defined by the lease, which makes it a powerful document. Once a contract has been signed, there is little room for any kind of negotiations. For example, if a contract does not include the landlord covering the cost for repairs, then the tenant must pay for that out of their own pocket.

The contract can be for a fixed period of time or a periodic (monthly) basis. Since the lease outlines all of the rights of the tenant, it is important to have it all written down with multiple copies given to each party. The contract should detail the following negotiated topics: the commencement date, rentable square feet, tenant improvements, subleasing, responsibility for structural damages and repairs, possible end date for the lease, and conditions for eviction. Many more issues can and should be added to the aforementioned list.

Commercial Lease And Lawyers

More often than not, those who sign a commercial lease quickly without reading, and without a lawyer, end up losing a lot of their rights as a tenant. A lawyer is trained to read through the legal jargon and determine if a contract will have a negative impact on a business. Just as much as the tenant must meet the needs of the landlord, so must the landlord meet the needs of the commercial tenant.


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