Everything You Need to Know About Commercial Lease Agreements

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What Is a Commercial Lease Agreement?
How Does a Commercial Lease Differ From a Residential Lease?
No standard form Commercial leases typically aren’t based on a standard form or agreement but are customized to the landlord's needs. As a result, it’s a good idea to carefully examine every commercial lease agreement offered to you. More flexibility Typically, there’s not much negotiating in a residential lease and landlords typically use a standard residential lease agreement. Commercial leases are generally subject to much more negotiation between the business owners and the landlord. Longer and more binding Unlike residential leases, which typically last one year, commercial leases can last for several years. A commercial lease also tends to be harder to break than a residential lease. Fewer legal protections Commercial lessors and lessees have less legal protection than the residential ones because the state and consumer laws typically apply to residential leases only. With a commercial lease, the tenant generally has no rights other than what is explicitly stated in the lease agreement. Tenants may be responsible for property taxes Renters in a residential lease agreement are usually not responsible for paying property taxes, whereas with commercial lease agreements, it's very common for the tenant to pay at least a portion of the property taxes.
What Are the Different Types of Commercial Leases?
Net Lease
Single Net Lease
Double Net Lease
Triple Net Lease
Absolute NNN Lease
Gross Lease
Percentage Lease
What to Look For In Your Commercial Lease
Common Terms In Your Lease, Explained
How Does Your Loan Factor Into Your Lease?
The Takeaway
3 Small Business Loan Tips
Generally, it can be easier for entrepreneurs starting out to qualify for a loan from an online lender than from a traditional lender. Lantern by SoFi’s single application makes it easy to find and compare small business loan offers from multiple lenders. If you are launching a new business or your business is young, lenders will consider your personal credit score. Eventually, though, you’ll want to establish your business credit. Traditionally, lenders like to see a business that’s at least two years old when considering a small business loan.
About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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