A lease is an agreement between two parties where the original lease will be maintained and the new lease has been signed. The new terms can be any combination of the old terms and conditions. A commercial lease must also include a purchase agreement, and a change of ownership agreement. A lease agreement is a contract between two parties where one party (lessee) agrees to pay rent to the other party (lessor). In return, the lessee receives use of the property from the lessor. A commercial lease agreement is a legal document that outlines the rights and responsibilities of both parties involved in a business relationship. Know about the various terms related to lease commercial agreements.
Rent
Rent is money paid to the owner of real estate for permission to occupy the premises. Rent may be paid monthly, quarterly, semiannually, annually, or any other period of time. Rent payments are generally based on the number of days the tenant occupies the property. If the tenant pays rent on a daily basis, then the amount of rent would be equal to the total cost of occupying the property divided by 365. However, if the tenant pays rent on an annual basis, then the amount would be equal to the cost of renting the property over the course of a year.
Term
The term refers to how long the lease agreement lasts. Most leases have a fixed term, meaning that they last a specific length of time. After the term expires, the landlord can either renew the lease or terminate the lease.
Rental Rate
Rental rate is the price at which landlords rent out their properties. A commercial lease agreement in Indiana is a document that is used to contract with a business for the right to use land for a specific purpose. A commercial license, for example, allows a company to rent space on an industrial scale in a building or warehouse. The rent is paid to the company when the lease is completed.
Landlord
Landlords are people who own rental properties. Landlords may be individuals, corporations, partnerships, LLCs, etc.
Tenant
Tenants are people who live in rental properties. Tenants may be individuals, corporations or partnerships.
Property
Property is anything owned by someone else. Properties can be houses, apartments, commercial buildings, land, etc.
Author Bio
Carl writes often about legal drafting of rental & commercial lease agreements, affidavit and bill of sale to help the people in needs.