One of the aspects that determines a business’ commercial success is its strategic location. How condensed the area is in terms of traffic and how often are people stopping over in a certain place. All these matters in a simple business, that is why more often than not, business owners look for places congested with people, areas that are heavily commodified in order to be somehow assured of people coming over.
Most businesses fail to recognize the value of a strategically located business, for they do not realize such factor can have an impact on a business’ cost and revenue, sales increase, and continued success.
That is why business owners commonly have the urge to lease spaces that are dense in terms of people. With this occurrence, people who own spaces that appeal to business owners most of the time prepare an agreement that sets the guidelines for the business owner. This is where the sample lease agreement comes in.
A basic lease agreement is an agreement that breaks down the necessary things the business owner (lessee) has to do with respects to the set rules of the owner of the space (lessor). It is important to take note of the importance of a well-written lease agreement as it determines whether the lessee sees it as a great investment or not, which in the end becomes a win-win situation for all.
The lease is defined as the act of paying money in order to use a land. It is a contractual agreement that is based on a given period of time, whether renewed or not. However, the lease agreement is the contract that outlines the information for the lessee by the lessor. It is a comprehensive document that states all the things that can be agreed upon by both parties regarding the space at hand. It also contains the rights and responsibilities of the lessee as granted by the lessor. To also note, a lease is a contract that gives a lessee right and ownership of a property owned by a lessor for a period of time. It is a statement that can be modified from time to time to best fit the needs and wants of both parties.
Having a space for lease is a profitable business as the demand is also high, not only for business establishments seeking for spaces perfect for commercial success but also for people needing spaces to sleep in (i.e. boarding houses, dorms, et cetera). So, having an agreement to better clarify the objective is mandatory to help make everything go as smoothly as possible and to avoid future unfortunate circumstances that would cost you to lose any profit because of a no-contract agreement.
Having a lease agreement at the ready for space rentals allows for the agreement and negotiation to be clear. Considering that a lease agreement contains all the necessary information about the lessor’s guidelines— what can be done and what cannot be —it will simply make the entirety of the negotiation more comprehensible for the lessee. Which will ultimately allow for misunderstandings to be at a minimal?
Also, having a private lease agreement will make you look formal and your business legitimate, as it implies you are about the well-fare of everyone through a professional method. Lease agreements simply indicate that you are not of fraudulent nature. That you are armed with the proper document in case things ever go the way most do not hope for.
More so, standard lease agreements will simply make any potential lessee understand the terms and agreements clearly, what it entails, and all other things that encapsulate the process of leasing.
Since a lease agreement contains the signatures of both parties, which solely means the sample agreement is read and agreed upon by both the lessee and the lessor, the document has the capacity to protect either party in case of future misfortunes. Whichever way the misfortune goes, a lease agreement can be used as a testament that there was or is an agreement prior to the negotiation and that both mutually agreed on the terms and conditions and everything that is contained in the agreement.
A lease agreement is a professional document that took time to materialize because of its contents, there is the tendency, especially with a well-laid-out contract, that the lessee will have the impression of you being serious about the business. It will ultimately make them think that you actually care about the business and all it encapsulates.
With a lease agreement being a permanent feature of your business and also it being a written agreement, you have the capacity and liberty to set some boundaries to your lessee. For example, they are not allowed to open beyond 10 pm or they have to be the ones to pay their own electricity. With a lease agreement, you will be able to clearly set at the beginning what they will be doing and what they will not be doing. You will be able to clearly set the boundaries effectively before the negotiation will take place.
There are various things you can put in your lease agreement, depending mostly on what you prefer. But aside from the ones that vary from one lesson to another, there are pieces of information that is seen common among lease agreements from different lessors. You may also see commercial lease agreements.
The lease agreement has to contain all the basic information of both parties (i.e. names, birthdays, age, et cetera). The address of the property or space to be leased should also be put in the lease agreement, to identify which one is being leased. The basic information can also include the amount of the rent and the amount being deposited, which can be used for future references. You may also see land lease agreement templates.
The term between every lease agreement varies from one to another, but the common idea shared by one another is the period for which the lease is valid. Some go for a month-to-month lease, others go for a year-long lease. Either way, it is important to state the term of the lease, to also give the lessee idea about the payment method (whether every month or every year).
A lot can be added to your lease agreement’s condition section, it simply depends on what you think best preserves the space to be leased. This content tackles certain aspects of the lease that are being taken into account which ranges from activities being prohibited and discouraged to which task is meant to be done by either party. You may also see printable residential lease agreements.
Conditions could also encapsulate the restrictions you will be imposing on the lessee, especially on illegal activities. This could go from activities that should be avoided to keep any trouble from emerging between other lessees or activities that might cause damages to property or to an extent of other lessees filing for lawsuits. It is important you stress and include this to avoid such circumstances from happening. For example, disruptive behavior is not welcome such as excessive noise or illegal activities such as drug dealing. You may also see sample vehicle lease templates.
Since leasing is also partly giving temporary ownership to a property or space to a lessee, it is also best if you include the rights to which they get to have and experience if they ever decide to go with the negotiation. It could be the right to do slight renovations within the property or space’s interior or the right to use as many appliances as they can. Whether big or small, it is important you include every rights a lessee has towards the space or property he or she is about to lease. You may also see rental lease agreement templates.
There are other pieces of information you can choose to include in your lease agreement, such as, if pets are allowed in the leased space or property. It is important to inform any potential lessees through your lease agreement whether pets are not allowed or not especially since most people nowadays own one, whether dog or cat. Simply state whether you encourage having pets or not. You can also include the information with regards to entry to the property. You may also see vacation rental agreements.
This comes most handy at times when repairs are needed, this will simply set the record straight that you will not be trespassing since you are being granted the privilege to do so after the negotiation. And lastly, you can also include the repairs and maintenances. Which part of the space or property should be cleaned and maintained by the lessee, which ones to repair, and if there are any damages which ones they will be held accountable for. This is also equally important because there are inevitable tendencies wherein a lessee will be ardent about not paying damages, so having a written agreement about it will simply testify to the fact that you have both agreed about it. You may also see land lease agreement templates.
Having a lease agreement or a written agreement in your leasing business simply makes the endeavor more practical and efficient especially for times when misfortunes occur. This way, you have something to go back to with regards to things you have agreed upon with your lessee. And ultimately, it just makes the whole endeavor more professional and legitimate. You may also see basic rental agreements.
If you find this article helpful in any way, do not forget to bookmark this page for future references. And, kindly share this with other lessors seeking lease agreement templates to use for their leasing business. You may also see simple room rental agreements.