Commercial leases can be complicated and, at times, confusing. Indeed, there are many clauses within the lease agreement to understand and new jargon too. But as a commercial landlord, you must understand commercial leases to ensure you carry out your obligations correctly and know when to exercise your rights. For instance, consider whether you want a protected lease for your commercial property. This article will explain what a \u2018protected lease\u2019 is and what this means for you as a commercial landlord. This will help you decide the type of commercial lease you should offer for your commercial property.<\/p>\n\n\n\n
When you have a commercial lease, you will have a commercial lease agreement<\/a> which governs the lease. It is a legally binding contract between you and your tenant containing the terms and conditions of the lease, such as the rights and obligations of both you and your tenant. For example, it will state:<\/p>\n\n\n\n Your commercial lease agreement will also indicate whether the commercial lease is protected. <\/p>\n\n\n\n A protected commercial lease enjoys the security of tenure protection. Ultimately, it is a commercial lease that has not \u2018contracted out\u2019 of this part of property law.<\/p>\n\n\n\n If a commercial property lease is protected, it offers the commercial tenant protection that the lease will not automatically end at the end of the fixed term. Further, the tenant gains a legal right to renew their commercial lease<\/a> on similar lease terms once it reaches the lease term end date. Although, this is not the case where an exception to this rule applies for the landlord’s benefit.\u00a0In some cases, the landlord may refuse to renew<\/a> the lease, usually due a tenant’s breach of contract. <\/p>\n\n\n\n Most commercial leases nowadays are not protected and, therefore, do not offer their commercial tenants security of tenure. You can refer to this as an \u2018excluded lease\u2019. Where you and your commercial tenant agree on this, the commercial lease agreement should contain a clause<\/a> which states this. Moreover, you are obligated to serve them a specific legal notice before they sign, so the tenant is legally aware of the rights they are forgoing when they sign the lease agreement.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
What is a Protected Lease? <\/h2>\n\n\n\n