Corporate Leases For Small And Big Businesses
Space for housing and businesses is an urgent requirement in recent times owing to the increasing population. A good number of people migrate to urban areas looking for jobs, thus contributing to the already pressing issue of lack of physical area.
Businesses, especially the newer ones, rely mostly on rental spaces as it is affordable and available in better locations. Here comes the role of a commercial or corporate lease that has to be agreed upon by both owners and tenants.
A corporate lease is a legal document that gives particular powers to the owners and the tenants. These vary according to the terms on which the agreement is made. Keep reading to know the types of corporate leases.
What Are The Types Of Corporate Leases?
- Gross Lease
Gross lease or full-service lease goes easy on the tenants. It is upon the landlords to bear all the expenses of the property like the insurance, taxes, maintenance, and the like. The tenants pay a fixed amount as rent every month and the cost of the utilities and management services like cleaning are all covered in it.
In this type of lease, it is important that the tenants have an idea of what services are provided and how often. The greatest advantage is that they need not worry about any extra expenses as everything is specified beforehand.
- Net Lease
In this type of lease, the tenants have to pay some extra costs along with a base rent. This extra rent is utilized for services like garbage collection, janitorial services, property management costs, and the like. There are three types of net leases.
Single net lease: The tenants pay the property tax together with the rent. The costs of other services are paid by the owner.
Double net lease: In this, the tenants pay the rent, taxes, and insurance.
Triple net lease: Here, the rent, insurance, and taxes are paid by the tenants and also the maintenance charges.
- Modified Gross Lease
This type of lease is flexible and the agreement is in favor of the tenants. All the minor maintenance costs are paid by them along with the rent. These are pre-decided at the time of renting. A benefit of a modified gross lease is that the lease rate will not change when the tax or insurance amount increases.
How To Choose The Right Property
The property meant for corporate lease can be rented by any organization, full-fledged or start-ups. While renting such a space, it is necessary that the business owners keep in mind the type of their business, accessibility, location, etc. It is imperative that small businesses especially don’t have any competitors in the vicinity. All the terms must be included in the agreement so that there is no chance for confusion in the future.
Doing a thorough study is a prerequisite to deciding on the type of lease. Requirements vary with the type of businesses and the lease agreements must accommodate individual needs.
Contact a Business Planning Attorney Today
To learn more, contact Tampa business transaction & formation attorney David Toback today to schedule a consultation.