Understanding A Commercial Lease Agreement
Another difference is that tenants of a residential tenancy agreement are generally not responsible for paying property taxes, whereas it is very common for commercial leases that the tenant pays at least a portion of the property taxes. You should clearly define your contribution to the means of marketing or advertising before entering into the lease. Try to negotiate terms that will limit your contribution and allow you to have a say in the use of the funds. It is possible to negotiate who is responsible for the extension or part of the support. It is important that the lease agreement defines the equipment requirements and is responsible for the costs associated with them. Try to negotiate as much as possible so that the equipment you buy remains your property (take away) at the end of the lease. Improvements made to the office or building to make it usable by the tenant. In accounting terminology, these costs are called “leasehold improvements” and can be amortized as expenses. In some cases, the lessor may ask for a bond or guarantee: This is a person who agrees to pay losses directly to the lessor if you are unable to pay the rent or breach the lease by other means….