This type of rent, on the other hand, recognizes the operating costs that the tenant must bear in addition to the basic rent. In most cases, tenants sign up for triple Net Lease (NNN), which means that the tenant also assumes responsibility for property taxes, insurance and the COMMON area maintenance (CAM) in addition to the basic rent. Other versions of the net tenancy include individual leases and double net leases, for which the tenant pays property taxes as well as taxes and insurance; in addition to the basic rent. Commercial tenancy contracts can be very different from tenancy agreements, especially with regard to liability, so these considerations should be added: the tenant has the right to transfer this rent, without the landlord`s consent, to a company with which the tenant can merge or consolidate, to a subsidiary of the tenant, to a company under common control with the tenant. , or a buyer for the bulk of the entire rental property. Except as noted above, the tenant cannot sublet all or part of the renters or give up all or part of that tenancy without the consent of the lessor, this consent is not improperly withheld or delayed. Utilities are often outside the rental type and it is therefore essential that the lease detracts from both the responsibilities of the takers and the owners. Some typical power companies are electricity, water, wastewater, gas, telephone or water. Because some commercial real estate properties have unique services for a utility, many homeowners choose to pay the amount of service benefits and charge each commercial tenant the service fee. If this is the case, the breakdown of the tenant`s meter percentage must be clearly indicated. If the lessor softens the lease by personally covering a utility company, it must also be indicated. At the beginning of the document, the parties participating in the lease must be identified in order to confirm the legality of the lease. Include the full name of the landlord and tenant, as well as the name of the business.
If a management company is involved, it should also be added. Finally, the accommodation address, which should contain the county, back streets, unit numbers and zip code, must also be included at the beginning of the document. This rental works for an indeterminate period, and it is easy to renew under the same old conditions. While the owner could include a clause indicating a possible rate increase after a certain period of time, nothing happens in the Blues` lease. It is understandable that this is the most common commercial real estate lease on the market. Note that each party can terminate this lease by issuing a notice of termination in accordance with the legal provisions. This is a legally binding contract between a landlord who owns a commercial property and a tenant who wishes to lease the commercial property with the intention of operating a business. The rental of commercial real estate generally falls within a retail, office or commercial space category.