In the business world, one of the most prominent and serious contracts is the legal arrangement between a property/facility owner and the tenant or property/facility user. The defined lease responsibility of each party is serious business.
Advantages of Leasing
Based on his/her business goals and financial situation, a business owner may elect to lease a property or facility. Some advantages of leasing include:
- Freeing-up capital to invest in space buildouts or other business growth opportunities.
- Increased financing and payment flexibility.
- Flexibility for future growth movement.
- Increased access to desirable locations.
Lease Responsibility for Landlords
Lease responsibilities for landlords are generally defined as follows and should be spelled out in a carefully reviewed and negotiated contract with the lessee:
- Making sure that the facility is in full compliance with State and local building codes.
- Provision of basic fire, gas and electrical safety standards.
- Asbestos management.
- Achieving minimum energy efficiency standards.
- Making any needed structural repairs.
- Provision of commercial property insurance.
Lease Responsibility for Tenants/Leasees
It is the lease responsibility of each tenant to pay the required rent on time and to give notice if there are any changes in the tenancy, including any property modifications needed. In addition, the tenant must provide the landlord with notice of any needed repairs that are the landlord’s responsibility.
Other maintenance issues, as defined in the lease contract, will normally be the responsibility of the lessee to keep the property in good condition.
Make Sure the Lease Fits Your Business
As a commercial property lease is undertaken, pay attention to the following:
- Is the amount of rent affordable? Do the monthly payment terms make sense? Does the length of lease fit your needs and business plans?
- Does the physical space meet your needs now, and does it have adequate flexibility for the foreseeable future? Are opportunities for facility modifications agreeable to you?
- Is the lease responsibility for each aspect of maintenance clearly and favorably spelled-out?
Seek Expert Real Estate Services for Your Perfect Location
Caldwell Commercial Real Estate Services is your trusted partner for Commercial Real Estate in Charleston, SC. Our commercial realtors and property managers have a combined 80 years of experience, so you can rest easy knowing that your commercial real estate needs will be met with results and superior satisfaction.