![]() And don’t forget to consider what will happen to the rental payments during each renewal term! Rent Payments and Expenses Sometimes the lease will grant renewal rights to the tenant while other times the lease will require the mutual consent of both the landlord and tenant before it can be renewed. When negotiating your commercial lease be sure to consider not only the length of the initial term but also the renewal rights. While many residential leases are for one year, commercial lease agreements can be for much longer terms including 5, 10, or even 30 years. If you are the tenant, you might consider asking for limitations on the personal guarantee such as dollar limits or time limitations. Some leases will also contain a personal guarantee. In most commercial situations a lease agreement will be signed by two business entities and the parties should make sure they are signing on behalf of their business entity and not accidentally on his or her on behalf as an individual. ![]() This week we will explain some provisions that should be included and some thoughts to consider about each. And understanding what terms should be included and the implications of each are of critical importance to ensure smooth relations between the landlord and tenant moving forward. Most businesses will encounter a commercial lease agreement at one point or another, whether as the landlord or a tenant.
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