· Parties Clause. A parties clause defines who the lease refers to. Your business is one party, while the tenant's business is the other party. Exact language is important in legal matters, so you want to make sure that the names listed here match the names of each company exactly.
· Premises Clause. This is the official address that is being rented. Any space that is part of the rental needs to be listed here as well, including additional storage locations, parking, kitchen facilities, etc.
· Use Clause. You want to be clear on what the tenant can and cannot use the space for. It may not be a problem if the renter conducts various types of activities in your rental, or you may want to make certain that only specific business activities occur in the building.
· Exclusive Clause. The tenant may want to have certain exclusivity. For instance, a coffee shop tenant may want to be the only coffee shop in your building.
· Rent Clause. This clause defines monthly rent amount and other expenses. This is the amount the tenant is agreeing to pay to you during the term described by the lease. You can also list dates when rent will increase in this clause.
· Term Clause. This defines the starting and ending dates of the rental agreement. Other dates can be defined here, such as when the business will open or when the rent payment is due.
· Alterations or Improvements Clause. Either you or the tenant may want to make improvements to the space. This clause defines who will pay for improvements, when they will be started, and when they will be finished. You can also state which contractor will do the improvements.
· Security Deposits. As a commercial property owner, you can ask for whatever amount you want for a security deposit. Or course, if you want to attract tenants, the amount needs to be competitive for the area. Whatever amount you choose will be listed in the lease.
· Insurance. You can define the amount and type of insurance each tenant is required to carry. Think carefully about what levels of insurance are reasonable – low enough to attract tenants, but high enough to protect your investment.
· Maintenance. Tenants reasonably expect you to keep the property in working order. Define your responsibilities for building maintenance.
· Assignment/Sublet Clause. This provision is important especially if you want the flexibility of selling your business or sharing space with other individuals or companies. There may come a point when you want out of a space. It this clause that sets the parameters for doing so.