Looking for a thorough guide on creating a better office lease?
You have probably heard the horror stories about bad tenants, or worse… poorly written office leases that make it difficult to remedy the problem tenant. Often the liable party is often the property manager.
As a liaison between the property owner and the tenants, property managers must ensure that the interests of both parties are protected. This is done by producing quality office lease agreement.
In this article, we will discuss the different elements that make a good office lease agreement.
Important Clauses in an Office Lease
One of the common mistakes property managers do is a failure to specify the rights and responsibilities of each party during the tenancy.
This mistake can eventually lead to problems and misunderstandings in the future for both parties, so it is essential that these details are fleshed out in the office lease.
Start with providing the basic information of the parties involved, that includes:
- The full names of both the tenant and the property manager.
- The lease amount.
- The start and end date of the lease.
- The location and the signatures that will bind the agreement.
Security Deposit Clause
A property manager should require the tenant to put up a security deposit that matches the monthly rent. Listing the amount in the contract, and making sure this deposit paid prior to the tenant moving in, should be a condition of rental of the property.
The security deposit from tenants must follow the law depending on the location of the office lease. This must be done properly because security deposits can be a problem if not handled correctly.
Maintenance of the Premises
The lease should specify the roles and responsibilities of all parties to the contract. It is common that tenants are required to maintain the premises.
Best examples of this are:
- Abiding the noise control rules. No noise between 10 PM and 7 AM
- To not change the locks without approval.
- Keeping the premises clean by throwing their garbages.
- To not destroy, deface or remove property of the landlord.
Most importantly, all requirements of the tenant and the property manager should be spelled out in the lease agreement.
Warning of Concealed Defect
If your property contains a concealed defect you need to be upfront in reporting this to any tenant renting the property. Concealed defects that need fixing should address with a repair schedule and presented to the tenant prior to moving in. If the property manager fails to do, this can be grounds for the tenant to file a legal case for not representing the property correctly. All defects must also be fixed before the tenant moves in.
The property manager has the right to terminate the agreement between the parties if the tenant has broken any rules stated. Additionally, all parties to the lease can push to terminate the lease for reason. Being specific and concise in detailing the termination of leases is important in helping to avoid any legal misunderstandings in the future.
However, if termination of the lease turns to an eviction process know the following. Evictions can be tricky. There are proper procedures that must be followed, or risk legal action to resolve the eviction. It is highly recommended that you consult with a commercial real estate lawyer before evicting a tenant to make sure it can be done effectively.
After the Tenant Leaves
After tenants move out it is proper to inspect, clean, and fix any changes to the property to make it prepared to be rented again by a future tenant. When completing repairs from previous tenants you should keep a detailed record of costs so you can make deductions from the security deposit, prior to returning it to the commercial tenant that has vacated the property.
After all, repairs, cleaning, and everything is ready for a new tenant to move in, a good property manager should have a marketing plan to ensure a new office tenant is ready to move in. basically, you can ask for services from plumbers Gilbert AZ.