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Buying LA Property |
Article Submitted by: Mesriani Law Group
Friday, 11 December 2009
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Owning a property in Los Angeles is great because it is a place where businesses come with lots of great opportunities to expand and profit from. But when it comes to owning a property, tenants should know the laws to avoid getting sued or encountering other related problems.
Basic Elements of Commercial Lease Agreements
Identification of the property address
Names of the landlord, tenant and other parties involved including their signatures
The dates of when the contract starts and terminates
Determination of the amount of rent
Complete details of rent deposits
For rentals, the monthly payment depends on the negotiation between the owner and the tenant. It also depends on the size of the room for renteither short term or long term lease.
Short term runs from less than a year until three years (but still it depends on the owner's terms). For the long term lease, the duration of the payment may depend on the amount and also the agreement between the two parties involved.
Every commercial lease should at the very least clearly set the following terms:
Proper description of the premises
Term (length) of the initial lease
The amount of base rent
Whether the tenant is responsible for the landlord's maintenance costs, real property taxes, insurance and operating expenses, and if so the exclusions
How rent is to be increased during the term of the lease, or upon its renewal
The security deposit and any personal guarantees required
Detailed listing of any improvements, alterations and/or repair (How, by whom, and the procedures that must be followed)
Who will own and pay for any trade fixtures the tenant and/or landlord install, including removal at the end of the lease
Who will be responsible for maintenance, utilities, and code compliance (e.g. handicap accessible bathroom)
Tenant's right of access to premises, hours of operation and HVAC hours of operation.
Signage
Landlord's right of entry
Tenant's responsibility to carry insurance and the amount of coverage
Business sale clause
Any options to renew
Right to sublet and assign
Going dark rights
Exit clause
Pet clause
Breach of the lease
Conclusion
Under the premises clause, it defines the rental space (location, the size of the space/lot), parking spaces, common areas, etc.
When it comes to renting the entire building, the premises clause says the tenant should provide the address of the building and other adjoining structures like the parking area.
Rent is usually divided into: monthly rent, common area dues and insurance. There are some owners who require their tenants to pay for some of the operating costs such as repair and maintenance of the property.
Speaking of repairs, the tenant may alter the space but still it has to be within the agreement between the owner and the tenant. Discuss who will perform the work, who will pay for the construction expenses, a date for commencement and completion, etc.
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Visit our <a href=http://www.mesrianilaw.com/>website</a> to help you understand <a href=http://www.mesrianilaw.com/Commercial-Lease-Agreement.html>commercial lease agreement</a>. Dial our toll number for legal assistance.
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