What is a Commercial Rental Agreement?

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  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 12 March 2020
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A commercial rental agreement is a legal document that serves as a contract for the leasing of rental property. This contract represents an agreement between the party who rents a commercial property and a person or business who owns the property. It includes details about the way the commercial tenant can use the property he is leasing as well as how much he will pay to rent it. It usually includes details about the rights and responsibilities of the commercial landlord and his tenant as well. For example, it may include information about which party is responsible for the upkeep of the grounds around the commercial property.

When a person decides to rent a residential property, he typically signs a rental agreement that was created using a pre-printed form. The landlord usually fills in the pertinent information, such as the names of the parties involved, the address of the property, and the amount the tenant will have to pay to rent it. A commercial rental agreement is often very different. In many cases, it is printed or written out so that each commercial lease is specific to the unique commercial rental arrangement. Since these agreements allow for much variation, potential tenants are often advised to review them more carefully before signing on the dotted line.


There are some factors that are considered critical parts of a commercial rental agreement. For example, this contract should list a set lease term. This means it should state when the lease will begin and when it supposed to end. It should also list the terms for ending the lease early as well as any penalties that may be applied for early agreement termination.

Rent terms are also important in a commercial rental agreement. The contract should list how much the rent will be and the amount of security deposit the tenant is expected to pay. It should also detail where and how the tenant is supposed to make payments as well as any charges that may be applied for late payments or bounced checks. Likewise, the agreement should also list other costs the tenant is expected to pay, such as those for insurance or maintenance costs.

A commercial rental agreement typically includes information about the size of the space the tenant will be renting and whether modifications will be made to the property. If modifications are part of the agreement, the contract will usually list who will pay for them and who will have ownership of any new fixtures at the end of the lease term. The agreement may also include details about where the tenant may place signs and whether or not subleasing is allowed.



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