{"id":180715,"date":"2023-05-03T02:31:40","date_gmt":"2023-05-03T01:31:40","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=180715"},"modified":"2023-06-16T02:03:10","modified_gmt":"2023-06-16T01:03:10","slug":"key-terms-commercial-lease","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-terms-commercial-lease\/","title":{"rendered":"What Key Terms Do I Need to Include in My Commercial Lease Agreement?\u00a0"},"content":{"rendered":"\n<p>You <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/types-commercial-leases\/\">form a commercial lease <\/a>when you lease your commercial property to a business owner. Further, a commercial lease agreement will govern your lease, which contains your and your tenant\u2019s rights and obligations. Include the key terms you require in the agreement to protect your property interest. This article will detail some key standard terms commercial landlords should include in a commercial lease agreement.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Commercial Lease Agreement?<\/h2>\n\n\n\n<p>A commercial lease agreement is legally binding between you and your tenant. It contains all the details of the commercial lease, which you are both parties to. It will set out both parties\u2019 rights and obligations regarding the commercial property, such as the:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>lease end date;<\/li>\n\n\n\n<li>rent details; and<\/li>\n\n\n\n<li>repair obligations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Key Terms&nbsp;&nbsp;<\/h2>\n\n\n\n<p>As <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/obligations-landlord\/\">a commercial landlord<\/a>, you should know the key terms your commercial agreement should contain. Whilst you should have a solicitor draw up your commercial lease agreement, knowing these terms is helpful. This will give you a head start when negotiating the commercial lease with your prospective tenant. Here we outline some of the key terms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Basic Details<\/strong><\/h3>\n\n\n\n<p>Your commercial lease agreement will need to contain the basic but essential details of the commercial lease. If you are a commercial landlord with numerous commercial properties to lease, this will help you identify one lease from another. These critical key terms of the commercial lease are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the definition of the premises, which is the detail of the property or area of the property the commercial lease covers;<\/li>\n\n\n\n<li>your details as the commercial landlord and the details of your commercial tenant; and<\/li>\n\n\n\n<li>the lease term\u2019s length (how long the lease lasts).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Usage Terms<\/strong><\/h3>\n\n\n\n<p>Key terms you must include in your commercial lease are usage terms. These state what your tenant can use the commercial premises for, such as the business activities they can carry out. If you have a long-term lease, consider keeping these as comprehensive as is in your interest to give your tenant flexibility should they need to change business activity.<\/p>\n\n\n\n<p>Equally essential to include here are activities which you do not permit on your commercial premises.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>The latter are restrictive covenants and can include activities which may harm neighbouring properties and which help to protect your commercial property.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Repair and Maintenance<\/strong><\/h3>\n\n\n\n<p>As a commercial landlord, you must make clear in <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/lease-agreement\/\">your commercial lease agreement<\/a> what your tenant\u2019s repair and maintenance obligations are for the commercial premises. It is naturally in your interest to ensure that repair and maintenance are mainly your tenant\u2019s responsibility. Therefore, you may wish to ensure these terms make your commercial lease a Full Repairing and Insurance Lease (FRI). This means that you will include lease terms which specify that your tenant must pay for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>all repairs;<\/li>\n\n\n\n<li>all maintenance, and<\/li>\n\n\n\n<li>property insurance.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Rent Review Clause<\/strong><\/h3>\n\n\n\n<p>As a commercial landlord, you must include a rent review clause in your commercial lease agreement where the lease term is five years or more. This gives you the right to periodically review the rent your tenant pays you to ensure it reflects the investment value of your property.<\/p>\n\n\n\n<p>A rent review clause typically says that you review the rent every three to five years and will detail the type of rent review you carry out. This could be an:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>open-market rent review; or<\/li>\n\n\n\n<li>index-linked rent review.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Contracting Out<\/strong><\/h3>\n\n\n\n<p>If your commercial lease is a short-term lease, like many commercial landlords, you may wish to include a clause which means your lease contracts out of part of the <em>Landlord and Tenant Act 1954.<\/em>&nbsp;<\/p>\n\n\n\n<p>Doing so means that your tenant does not have the security of tenure, which is a legal automatic right to renew the commercial lease when it reaches the lease end date. This may be in your interest where you do not want the tenants to remain in the property and saves you the hassle of the legal notices associated with a tenancy with the security of tenure.<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div 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For example, a rent review clause ensures your tenant is paying rent at a rate which reflects the property&#8217;s changing value and repair. Additionally, consider maintenance terms which place the obligation on your tenant rather than you.<\/p>\n\n\n\n<p>If you need help understanding key terms you, as a landlord, need to include in your commercial lease agreement in the UK, our <a href=\"https:\/\/legalvision.co.uk\/leasing-lawyers-lp\/\">experienced leasing lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<a href=\"https:\/\/legalvision.co.uk\/membership\"> membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1683077280034\"><strong class=\"schema-faq-question\"><strong>What is a commercial lease agreement?<\/strong><\/strong> <p class=\"schema-faq-answer\">A commercial lease agreement is legally binding between a commercial landlord and a commercial tenant containing the lease terms and conditions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1683077287811\"><strong class=\"schema-faq-question\"><strong>What key term should I include in a commercial lease agreement as a commercial landlord?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">As a commercial landlord, there are many key terms you need to include in your commercial lease agreement. One of these, for example, is the usage of terms.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/180715\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-terms-commercial-lease\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Key Terms Do I Need to Include in My Commercial Lease Agreement?\u00a0\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>You form a commercial lease when you lease your commercial property to a business owner. Further, a commercial lease agreement will govern your lease, which contains your and your tenant\u2019s rights and obligations. Include the key terms you require in the agreement to protect your property interest. This article will detail some key standard terms<a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-terms-commercial-lease\/\">Continue reading <span class=\"sr-only\">&#8220;What Key Terms Do I Need to Include in My Commercial Lease Agreement?\u00a0&#8220;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3197,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"175605,179606,178944,179083,2770,179205","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[30],"tags":[61,751,1257,1267,1315],"class_list":["post-180715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-lease-property","tag-commercial-lease","tag-key-terms","tag-break-clause","tag-commercial-landlord","tag-alienation-clause"],"acf":[],"yoast_head":"<!-- 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Qualifications: PhD, Human Rights Law (underway), University of Bedfordshire, Post graduate diploma, Law, Middlesex University.","sameAs":["https:\/\/www.linkedin.com\/in\/ms-clare-susannah-f-4a243545\/"],"url":"https:\/\/legalvision.co.uk\/author\/clarefarmer\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-terms-commercial-lease\/#faq-question-1683077280034","name":"What is a commercial lease agreement?","acceptedAnswer":{"@type":"Answer","text":"A commercial lease agreement is legally binding between a commercial landlord and a commercial tenant containing the lease terms and conditions.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-terms-commercial-lease\/#faq-question-1683077287811","name":"What key term should I include in a commercial lease agreement as a commercial landlord?\u00a0","acceptedAnswer":{"@type":"Answer","text":"As a commercial landlord, there are many key terms you need to include in your commercial lease agreement. One of these, for example, is the usage of terms.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/180715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13326"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=180715"}],"version-history":[{"count":8,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/180715\/revisions"}],"predecessor-version":[{"id":181683,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/180715\/revisions\/181683"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3197"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=180715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=180715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=180715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}