A Florida commercial lease agreement deals with the property that solely serves a commercial purpose. It includes certain things that the state law considers mandatory to include. If you are interested to know about the details on the Florida commercial lease agreement and its uses, keep reading.
What Is a Florida Commercial Lease Agreement?
A Florida commercial lease agreement is a legal contract that a commercial property-owner uses when renting-out a property to businesses. This legal document consists of all the terms and conditions that the landlord and the tenant agree upon.
Moreover, the Florida commercial lease agreement outlines the rights and responsibilities of both parties that sign the document. This helps in clarifying the expectations that the landlord and the tenant may have from each other.
Under the state law of Florida, there are three lease options that one can opt for renting a commercial property. These types include:
- Gross Lease
The gross lease is the tenant-friendly lease that is available for full service. According to the gross lease, the tenant has to pay the rent for the property they use for their business. However, the landlord covers all the other expenses including the insurance and taxes.
- Triple Net Lease
The triple net lease is more landlord-friendly as compared to the gross lease. According to this lease, the tenant has to pay for the insurance, taxes, and other expenses with the agreed rent.
- Modified Gross Lease
The modified gross lease is a compromise between the gross lease and the triple net lease. This lease does not have fixed responsibilities, rather it will always differ. This type of lease forms by a mutual understanding of the landlord and the tenant.
Who Needs a Florida Commercial Lease Agreement?
The Florida commercial lease agreement binds the landlord and the tenant into a contract for renting a commercial unit. Therefore, anyone who needs a commercial property on rent or to rent in Florida needs the Florida commercial lease agreement. This may include:
- Someone who owns a commercial property
- Someone who is a commercial property manager
- A business owner who needs a building for office purposes
- Someone who is looking for a commercial building
- Members of industrial setup who intend to establish themselves
Moreover, a Florida commercial lease agreement binds the contract for a longer duration of time. So anyone who prefers to settle longer contracts for once needs the Florida commercial lease agreement.
This works for both the landlord and the tenant, saving them the hassle of renewing the contract frequently. Some landlords may be reluctant to hire new tenants every now and then because of the trust factor. Likewise, many tenants prefer to have a long term contract in order for them to set themselves up well.
What You Can Use a Florida Commercial Lease Agreement for?
A Florida commercial lease agreement serves to bind a tenant into a rental agreement. This agreement can be for an office, an industrial space, or retail purposes. Generally, the landlords provide the tenant with a “vanilla box” layout which they can fill in according to their needs.
A Florida commercial lease agreement is used to mark the rights and responsibilities of the landlord and the tenant. This is important, when the two sign a deal, it can prevent any conflict from occurring.
The landlords can use the Florida commercial lease agreement for making a relationship with the tenant to settle certain terms. Another use of the Florida commercial lease agreement is the commitment for long term contracts.
This agreement binds the landlord and the tenant legally for longer duration which makes things easier for both. The tenants can use long term contracts to set and grow their business in the new place.
What Are Included in a Florida Commercial Lease Agreement?
There are certain things that are important to include in the Florida commercial lease agreement. These include:
It is important for the lease document to include the complete contact information of the landlord and the tenant. It also must include the name of the business that will operate in the rented building. If the Florida commercial lease agreement has a management company as one party, including their information is compulsory too.
This section of the lease agreement includes information about the commercial property that is to rent. This information comprises the registered address of the building that is for commercial rent purposes. Moreover, if any zoning ordinances govern the location of the building, it is a must to state them. It is important so that the tenant is aware of the zones before establishing their business.
Terms of the Lease:
There are various key terms that form an important part of the lease agreement. These include the duration for which the signed lease is valid. Therefore, the agreement must clearly state the start date and the termination date for the contract.
Moreover, the terms for the situation where the business of the tenant may collapse are also stated in the lease agreement. In situations like these, some of the landlords let the tenants free of the due rent. On the other hand, some landlords still demand their due rent as it is legal for them.
The terms of the lease decided importantly include the amount of rent due each month. The landlord and the tenant decide this amount after negotiations and mutual agreement.
Moreover, the lease agreement must state the date on which the rent payment is due, as well as the method of payment, shall form a part of this section in the contract.
In addition to these lease terms, an important one to include is the amount of security deposit. This term refers to the amount that the tenant must pay before moving in the place as the security. Along with this, upon termination, the duration within which the landlord must return the deposit also appears on the agreement.
Finally, if the landlord demands any additional fee charged from the tenant, they must mention them in the lease. These charges include late fees for delayed payment of the rent and additional charges for any check that bounces.
Utilities and Additional Expenses:
It is important to include in the agreement about the sharing of the utilities and their expenses. These utilities include water, electricity, internet, phone, and many more. Likewise, terms regarding the parking area are must to include in the agreement. Sometimes, the tenants may have to pay additional charges to avail of the parking space.
Maintenance and Improvements:
Typically, it is the responsibility of the landlord to take care of the maintenance and repair issues in the building. However, in situations where the parties agree differently, it is important to state that clearly in the agreement.
The Florida commercial lease agreement addresses the issues regarding renting of any commercial property in Florida. People from different business sectors can use this agreement to make deals for commercial properties.
Therefore, CocoSign offers the Florida commercial lease agreement template along with many others on its website. One can browse through the immense collection available there.
CocoSign represents a wide collection of legal templates covering all types of leases, contracts and agreements for personal and commercial use. All legal templates available on CocoSign shall not be considered as attorney-client advice. Meanwhile, CocoSign shall not be responsible for the examination or evaluation of reviews, recommendations, services, etc. posted by parties other than CocoSign itself on its platform.