🚩 Lease Terms to Pay attention To 🚩
Types of Lease
Full Service
- Landlord pays for everything
- Not ideal, common in smaller commercial buildings
Triple Net
- Tenant pays for everything
- Ideal scenario
Modified/Gross
Lease Due Diligence
- Who pays pest control? Our family’s restaurant gets billed 2-3k every time we get termite issues
- Do you have to pay a signage fee? Landlords sometimes charge rent to have you put your sign up
- Sublease vs Assignment. Can the tenant sublease their unit to another tenant? A sublease means the original tenant is still liable, where an assignment transfers
- Use clauses. Competition with other tenants in the space. More flexible is better for the tenant
- Attornment clause. Who is paying who, protection when paying new landlords
- Estoppel. Legal instruments prevents from saying something contrary
- Subordination clause. Tenant rights are below that of the lender, future buyer, etc