A construction lease is a type of legal agreement between a landlord and a tenant. The content of this lease agreement may vary depending on the terms, conditions, and processes set by both parties. People also commonly use this document when renting out commercial and industrial establishments.
How to Create a Construction Lease?
According to Statista, the total amount of commercial real estate transactions in 2018 accumulated to a staggering $394 billion. Although most of these numbers do not equate to leasing, it shows how competitive and vast the market is. So if you desire to be on top and always ready for more construction development, we provided simple steps in creating lease agreements down below for your convenience.
1. Check State Leasing Laws
Before you start bulldozing your way through creating construction lease agreements, you should begin to learn the current state laws. Different states may have different policies. As landlords, it is your responsibility to learn this, so you are fair not only to your tenants but to yourself and the law, as well.
2. Create Provisions
After you've read and researched what is necessary, you can start creating terms and provisions for the agreement. Make sure that you incorporate the state laws well and avoid missing out on essential matters. If your company has a particular policy when it comes to renting and leasing, you should also try to consolidate it into the construction document.
3. Use Formal Language
Never and ever use informal language in a document template, except if it is the name of your product, the store, the company, or other necessary inclusions. Make sure that your words, tone, and style are proper, concise, and efficient.
4. Accept Legal Opinions
After finalizing your document, you should consult with a lawyer for their opinion and see if there are any discrepancies. If you have a corporate lawyer, he or she can even create the whole agreement for you. However, this service can get pricey at times.