If you assign a lease, you can continue to be held liable if the new tenant is late in the lease. For retail leases covered by the CT Act, clauses that allow the lessor to refuse the agreement are illegal unless you agree to take responsibility for the new tenant`s delay. Base rent refers to the minimum or basic amount of rent, as stipulated in the rental agreement, without any percentage of rent or other operating or additional costs. Your proposed rental agreement probably contains other conditions. Read our publications on commercial leasing for more detailed information. A commercial lease is used by a tenant to rent space for a business, while a residential lease is used by a tenant to rent a house or premises for personal habitation. Commercial leases are generally considered to be contracts between competent businessmen. As a result, tenants of commercial real estate have less public protection than tenants of dwellings. Since the parties are competent businessmen, the underlying belief is that they should be able to negotiate the terms of the lease according to their wishes. Consistent with this idea, parties to a commercial lease generally have greater bargaining power and bargaining capacity than parties to a residential lease. The problem with oral leases is that they can be difficult to implement.
In the event of a dispute, a court should hear evidence and decide who will accept the version of the story. In the case of a written agreement, the courts are usually required to abide by the terms of the written agreement, even if the courts do not like it. Some jurisdictions require that any contract dealing with the country or an interest in the land be in writing in order to be enforceable. As a general rule, the legal fees related to the preparation and negotiation of the rental agreement can be agreed between you and the owner. It`s a good idea to try to negotiate that each party pays their own legal fees, or at least there is a limitation on your contribution to the owner`s expenses. A percentage lease is for a particular type of lease agreement, which applies primarily to retailers, such as shopping malls or malls with multiple tenants. In the case of a percentage lease agreement, the tenant pays a fixed or basic rent plus a percentage of gross income. To create this type of lease agreement, charge the tenant « base rent plus % of gross margin ». A deposit is a sum of money that the tenant pays to the lessor to ensure that the tenant fulfills all the obligations arising from the rental agreement. The lessor holds the deposit for the duration of the rental contract in order to ensure that the tenant is not late in the conditions of the rental contract or does not damage the property. If the tenant damages the property (« normal wear and tear ») or if the tenant has not paid the rent, the lessor has the right to recover the debt of the surety.
As a general rule, the tenant must make the deposit available to the owner at the beginning of the rental period. At the end of the rental period, the tenant recovers the deposit minus any deduction for repair/restoration.