Florida’s booming commercial real estate market offers exciting opportunities for property owners who lease space to businesses. But beware – pitfalls can arise if you have not implemented legal protection.
Well-drafted contracts can offer stability and security in your relationships with tenants. Shore up your lease agreements for maximum protection, and adopt the same proactive approach with your other commercial contracts.
Lease agreement essentials
The cornerstone of any landlord-tenant relationship, a well-drafted commercial lease in Florida sets the terms for rent, duration and responsibilities. Unlike residential leases, these agreements can offer greater flexibility for negotiation and should cover crucial aspects like:
- Rent structure. Flexibility in commercial leases allows for various arrangements. Choose between a gross lease, triple net lease, or modified gross lease, depending on your property and objectives.
- Maintenance and repairs. Define maintenance and repair responsibilities to avoid unforeseen expenses and maintain a harmonious relationship with tenants.
- Insurance coverage. Require tenants to obtain insurance that covers property damage, liability and potential business interruptions to protect your investment and premises.
- Use of premises. Outline how your tenant can use the property. These clauses typically specify the type of business they can run (office, retail, etc.) and highlight any legal restrictions on the activity.
These are just four examples of provisions that can safeguard your legal rights as a landlord. Unless they are grossly unfair to the other party, you can generally include terms that may be unique to your circumstances.
Protection from potential adversity
Someone with deep roots in Florida real estate matters (and the laws that govern them) can offer assurance that your property is secure with enforceable, robust contracts. Along with legal protection, you gain peace of mind.