When a business owner signs a lease to occupy a commercial property, the tenant has certain responsibilities and obligations. A renter may be held responsible if they are late on their rent payments or if they cause damage to the building. If there are any violations to the terms of the agreement, then property owners can take action against tenants and landlords for breach of contract.
However, things don’t always need to turn ugly between owners and renters. With the right knowledge about the responsibilities and obligations of tenants to commercial rental properties, a lease is guaranteed to run smoothly for years to come.
How To Prepare Before Signing the Lease
Often, commercial property rental violations stem from the renter’s limited understanding of the contract. Here are some ways to prepare before signing the lease for rental properties:
Analyze the Area
A contract for rental properties will lock the business in for the next three to five years. It’s important to evaluate the environment for the potential clientele.
Research the Owner
Not all landlords are true property owners. Far too often, they’re also renting the space out for a living. Learning about the owner gives an idea about their financial stability.
Review Applicable Laws
It is always necessary to research zoning, nuisance, and environmental laws. This will allow the business to operate at its best capacity.
Responsibilities of a Commercial Tenant
Below are the key responsibilities of a business owner renting commercial or industrial rental properties:
Base Rent
The base rent refers to the amount a tenant needs to pay, which is based on the space’s square footage. This is a fixed amount that the renter owes, usually on a monthly basis, and does not depend on revenue.
Additional Rent
The additional rent consists of fees that a tenant needs to pay on top of the base rent. These cover maintenance, real estate taxes, and other miscellaneous expenses. The tenant and landlord pay a shared amount to the property owner.
Interior Space
The interior space requires costs and occurrences such as utilities, flooring, HVAC systems, and such. All construction expenses such as walls, flooring, and furniture to be installed within the premises are part of it.
Insurance Costs
Apart from standard insurance for rental properties, the renter also needs to pay for their own personal property insurance for coverage of their equipment, appliances, and other inventory. They also need liability insurance in case of accidents.
Maintenance and Repair
Unlike in a residential building, the landlord shares the maintenance and repair costs with the one renting the commercial space. The landlord is responsible for the exterior and keeping things neat, clean, and professional-looking, but they generally share other upkeep costs of rental properties with the tenant.
Environmental Responsibility
If a commercial space is too large, the landlord may delegate some responsibilities to the tenant such as adherence to environmental guidelines. The renter must discard hazardous waste properly, follow recycling standards, and take care not to emit harmful gases into the atmosphere.
Compliance With Laws
It is the tenant’s responsibility to make sure they’re following the zoning laws for their specific business type. The landlord or owner assigns the space to the renter, but the renter still needs to make sure they’re not going against municipal restrictions.
Always Know Your Duties as a Commercial Tenant
When it comes to signing a lease for industrial or commercial rental properties, a tenant’s knowledge of their obligations is very important. A solid grasp of the rent structure and agreement always goes a long way, with one less thing to worry about for the business owner if everything with the lease is up and running.
Find Rental Properties with Schwarz Properties!
As a renter, always maintain transparency with the landlord or property owner. It’s one thing to pay rent on time to preserve the relationship, but it’s another to be proactive about what duties are involved on the part of the tenant. Schwarz Properties can help you navigate any rental or leases you might come across. Visit our website or call (336) 625-6076 today!
