A valid lease agreement for a commercial property assures that both the landlord and tenant are happy with the way the property is rented, utilized, and maintained. While leases can be modified with time in answer to variations in the real estate market, the original lease should attempt to set major ground rules about the use of the property and answer many basic questions that may come up.
What is a Commercial Lease Agreement in NY?
A New York commercial lease agreement sets a landlord-tenant relationship that includes the use of rental space by an individual or group working in a commercial quantity. When choosing a tenant, the landlord’s first purpose is to decide if the applicant would be a good tenant. The landlord will normally ask them to fill out a rental application to get their current income profile, corporate tax filings, and previous landlords. The landlord should also review zoning laws to confirm that space meets all local laws. Once a tenant has been confirmed and the terms are accepted, both parties may sign a lease to create a binding agreement.
What Disclosures Must Be Made in a New York Lease Agreement?
Several disclosures must be included in a New York (NYC) Commercial Lease Agreement. If the property is in New York City, landlords are required to disclose the presence of bed bugs to tenants. New York City landlords have to fit the windows of the unit with window guards if the tenant has a child who is ten years of age or younger. The landlord must give a signed copy of the agreement to the tenant within 30 days of the tenant moving into the property. The landlord must disclose to the tenant the name and address of the bank where the security deposit is kept.
How to Write a Commercial Lease Agreement in NY?
If you are writing a commercial lease agreement in NY, make sure your lease addresses these common questions.
- Rent -State the amount of the rent, when it is to be paid, and rules about late payment fees.
- Deposit -If you need a deposit on the property, dedicate the section of the lease to discussing it. Enter the amount of the deposit. Also, explain what the tenant must do to get the complete or partial refund of their deposit.
- Taxes - Under the large majority of leases, the landlord includes property taxes and associated fees. Write down how taxes will be paid in the selected section of the agreement.
- Services and Amenities -Outline which utilities are the liability of the tenant and which are for the landlord. Also, you can use this section to discuss who is accountable for snow removal and other services.
- Renovation and Improvements -Describe what types of improvements and renovation to the property the tenant is permitted to make. If the landlord intends to make improvements upon demand from the tenant, this part can also be used to outline the process for submitting a request to update the property.
- Subletting -Assign a section telling that under what conditions the tenant is permitted to sublease the property. If subletting is allowed, outline what liabilities will fall to the tenant.
- Illegal Activity -Add a legal disclaimer about performing illegal activity on the property. Most landlords prefer to keep the right to terminate the lease directly if illegal acts are found.
- Terminating and Renewing the Lease - Describe the process for terminating the agreement, as well as renewing it when the current lease ends. Discuss your local laws and regulations while writing this part, as there may be laws ruling when and how notice may be given.
All NYC lease samples and lease agreements should be signed by both the landlord and the tenants. With this site, you can sign and edit pdf online. Remember to get any agreement viewed over by a lawyer before signing it. There may be particular rules and laws about what needs to be covered in a commercial lease agreement in NY.