Simple Commercial Lease Agreement Template Word

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With the ever-increasing importance of office rentals in terms of increasing revenues, it is essential to prepare and implement a useful Simple Commercial Lease Agreement Template Word. This will ensure that the sales team can easily determine the key clauses of the agreement. As the popular perceptions of office rental as an investment in the company’s future and a practical solution to future expansion are of importance, it is very important to have a comprehensive document ready before the actual signing of the agreement. Though not mandatory, it is beneficial to understand the different types of Business Leases and the type of provisions that will ensure its continuation in the future.

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First, the term of the business leases will have to be fixed. It is possible to opt for a short term or a long term contract depending on the profits generated. If the sales and revenue projections are high, a lease may be extended to allow for continued growth in the future. At the same time, this can also result in generating a profit if it is expected that the sales and revenue projections will decline in the future. Some leases will be renewed if the lease expires and is renewed in such a way that the additional cost is covered by the longer term.

Another type of agreement which has to be established is the non-exclusive clause. This will ensure that if the lease is extended, the party that occupies the space will not be required to offer a lease to the other parties to stay in the same place. The same principle can be applied to the sublease and payment clause. On the other hand, the contract can have more than one party. Either one of the owners can extend the contract.

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The leasing agreement can be on an annual, quarterly or monthly basis. This can also have a variety of additional provisions such as options, which can be like all payments and a lump sum option. Depending on the usage of the property, the lump sum option can be computed and paid in a lump sum or monthly installments. The drawback of this option is that there is a minimum amount paid and only the remainder will have to be paid in the future. These days, some leases include certain insurance provisions to prevent property damages, including the settling of money claims against the tenant.

Apart from the long term, there are also short and medium-term options that can be implemented on real property. For instance, it can be an option to purchase the property in the future and renew the lease on the same terms and conditions. The total amount will have to be finalized through a structured process. If the lease is deemed to be favorable and there is room for future growth, the tenant can also go for a full lease extension.

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While a lease agreement is being drawn up, the advertising and marketing options and the leasing charges have to be chosen. The charges for advertising and marketing services should be reasonable. The amounts required for the same will depend on the marketing campaign and the clientele. There is also a tax deduction that can be availed for the expense incurred in marketing the property. The payments have to be calculated and negotiated between the two parties.

After the basic provisions have been agreed upon and the lease agreement has been drawn up, it is important to have a good presentation of the property and any additional plans which may be implemented. This will ensure that all parties are well acquainted with the basic terms of the agreement. For example, the initial installment is mentioned as the deposit whereas the balance of the payments is called the profits.

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