Leasing a commercial property is a great way to gain access to the premises your business needs without having to commit the funds required to purchase a property outright. This commercial lease will be governed by a lease document. Essentially, this is a contract that outlines the terms and conditions of the lease so that both parties understand their own rights, responsibilities, and limitations.

The commercial lease is legally binding, and so you'll need to take great care to ensure everything is in order before you sign it. If you discover later that something is not quite right, it will be difficult to change the contract once it has been signed — this could leave you significantly out of pocket.

Your attorney will be able to help you understand what you are signing up for, eliminating any of the legal doubt that may cause problems once the lease begins. Read on to discover more about why it's a good idea to have your commercial lease reviewed by a qualified attorney.

Tax Responsibilities

There will usually be some form of property tax due on your leased property. This can add a substantial amount to your regular costs, particularly in more highly sought-after areas of Warwick, Rhode Island, where property taxes tend to be higher than elsewhere. With this in mind, it's very useful to understand who is responsible for these taxes.

When an attorney examines your lease agreement, they will be able to identify who needs to pay these taxes. Your landlord may assume responsibility for paying property taxes, or they may transfer this responsibility to you for the duration of your lease. This will have a huge effect on the total cost of the lease, so it's best to understand this before you sign up for anything.

Insurance Requirements

It's likely that you will need some sort of insurance for your commercial property, and you may need to check that you are fully covered for any business activities you plan to conduct there. The landlord may already provide this insurance, in which case you will not need to take any further action. In other instances, however, the responsibility may shift to the tenant — i.e., you — and the landlord will not provide any insurance for the leased property. Even if the landlord does provide insurance, it may be necessary to check that your intended business activity does not invalidate this.

Your attorney will be able to examine your lease document and inform you of the insurance situation. They will let you know whether or not you need to take out additional insurance before you can begin leasing.

Usage Limitations

When you lease a commercial property in Warwick, Rhode Island, you likely have a specific purpose in mind. This is your business plan, after all, and you need to make sure the property you find is suitable to support this plan. 

This is where an attorney can make a real difference. They will check that you are permitted to carry out all the relevant business activities within the property itself so that there are no nasty surprises later on. For example, if you lease a property with the intention of serving food and refreshments to your guests on-site, you'll need to make sure you are permitted to do so. If the lease contains any restrictions or limitations that may harm your business or affect your future plans, you need to know about them. Your attorney will make certain that you can use this property to execute your business plan. 

Missing Information

Your commercial lease will include a large amount of information — all of which will need to be present and correct before you sign. This will include personal information regarding the landlord and the tenant, such as their names and the names of any guarantors associated with the lease.

In addition, there will be information regarding the terms of the lease, such as the date at which the lease begins, how long the lease will last for, the renewal process and requirements, the payment amount and method, and information regarding the intended purpose of the commercial property. Finally, there should be information on the property itself, like the legal description, location information, and the size and layout of the property.

It's very important that all of this information is included. If not, the lease could be invalidated further down the line, causing an unnecessary headache for all parties involved. Even if the lease is not invalidated, you may encounter obstacles if the agreement is incomplete, and these may be difficult to overcome.

Legality and Enforceability

While all of the above points are important if the lease agreement is to be considered complete, there are other aspects to consider, too. The lease will need to meet all legal requirements in Warwick, Rhode Island, and the terms of the lease will need to be enforceable under local and federal law.

This may be difficult to assess if you have not had the proper training. But an attorney will have the skills, qualifications, and experience required to assess these key points, providing you with peace of mind.

Negotiation 

Your attorney will certainly be able to check everything is in order on your lease agreement, but they may be able to go beyond this. By helping you understand the terms and conditions associated with your specific lease, they will also help you recognize good and bad deals for your business. 

With this as a foundation, you and your attorney may be able to negotiate some of the details of the lease agreement on the way to an optimal deal. You may also find it easier to compare lease agreements on other properties, in search of the best possible option.

Get the Help You Need on Your Commercial Lease Agreement — Reach Out Today

Need assistance from qualified attorneys on your commercial lease agreement? Reach out to us today and discover how we can help.