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Your Oregon commercial lease agreement will typically apply for 3 to 10 years, so it is important to take great care when creating it.

Unlike residential agreements that cover the terms of renting personal property, a commercial lease details the terms of leasing a commercial space. If you're a new landlord and have never drawn up a lease agreement before, you're probably feeling overwhelmed.

The good news is that we have created this detailed guide to take you through the ins and outs of Oregon landlord-tenant laws to help you stay compliant and build a strong contract that will set the tone of your relationship with your tenant.

Oregon Commercial Lease Agreement

Commercial lease agreements are legally binding contracts between a landlord or lessor and a tenant's business or lessee.

The document covers the terms of the lease of commercial space, such as an office space, retail building, or warehouse, which is leased to tenants in exchange for monthly rent.

These lease contracts generally cover a longer lease period than residential agreements that are usually valid for up to two years. Landlords in Oregon must include certain details and disclosures in their rental contracts.

Types of Lease Agreements

There are three main types of commercial lease agreements. They are:

  • Gross lease contracts - In a gross lease, the tenant agrees to pay the monthly rent, and the landlord uses this sum to cover the costs of insurance, taxes, and upkeep for the common areas.
  • Triple-net rent agreements - With a triple-net lease agreement, the tenant pays all property costs. This includes taxes, insurance, and other additional expenses for the shared space. The tenant will pay the landlord a lower monthly rent amount and cover these expenses each month.
  • Modified gross lease agreements - These two types of leases are combined in this one. Both parties share the costs. The landlord and tenant can agree on which costs each will pay for. A tenant can pay insurance in addition to their monthly rent, while the landlord takes care of the property tax and other costs.

What to Include

According to federal law, the following details must appear on your Oregon commercial lease agreement:

  • The names and personal information of the tenant and landlord
  • A description of the commercial property and its physical address
  • Pet allowance provisions
  • The monthly rent amount and lease term
  • When the rent is due each month
  • Details about the security deposit, including the date it is due and where it will be stored
  • How the utilities will be paid in shared properties
  • What repairs and ongoing expenses the tenant will be responsible for, and which will be done by the landlord
  • Signatures and date - commercial leases are only considered legally binding once both parties have signed the agreement

Mandatory Disclosures

Your lease agreement will have to document the following disclosures:

  • Information about the commercial property owner. By law, landlords must disclose the full name and address of the owner of the building.
  • Lead-based Paint Disclosure. All landlords must inform their tenants about the presence of lead-based paint in properties built before 1978.
  • Disclosure of Flood Hazard. You are obligated to inform tenants of potential flooding hazards if the property is in a 100-year flood plain, which is a low-lying area close to water.
  • Carbon Monoxide and Smoke Detectors. According to State Fire Marshal requirements, the property must have at least one functional carbon monoxide detector before signing any rental agreements. A landlord should disclose this to their tenants in the commercial lease.

Build Your Own

A free form is a good place to start if you're looking for a quick way to draft an Oregon commercial lease agreement document. You can download and customize a lease agreement template from DoorLoop in Word or PDF format.

Alternatively, use our editor tool to personalize your commercial rental contract. You can also use DoorLoop to manage lease agreements, receive rental payments from tenants, list properties for rent, and so much more! Book a free demo to experience our software firsthand!

Final Thoughts

Creating a leasing agreement can be challenging. There are certain details and mandatory disclosures to be made, so building your own Oregon commercial lease agreement can seem intimidating.

Fortunately, you can quickly write personalized lease agreements with our smart lease-building tool.

DoorLoop is the best option for creating commercial leases, particularly for Oregon rental business owners with several properties, because it has a clever autofill function that will get your rental contracts ready in no time. 

There are also a ton of additional features you can use to manage and grow your business. Reach out to us today to learn more about our innovative software solution!

FAQs

When does a landlord have to return a security deposit?

According to state law, a landlord has 31 days to return a tenant's security deposit from the end of the lease term or from the date the lease is terminated.

Under what circumstances can an Oregon commercial lease agreement be terminated?

Rental contracts are terminated under one of two circumstances. Firstly, if the Oregon commercial lease has reached its term, it is automatically terminated.

There is no notice required. Secondly, the lease will be terminated if a tenant doesn't pay their rent within 10 days of the due date or as stated in the rental contract.

How can a landlord forcibly evict a tenant in Oregon?

Forcible entry and detainer (FED), an expedited court process that assesses only whether the tenant has the continuous right to possession of the property and ignores other claims like damages, must be followed by an Oregon landlord who attempts to evict a tenant forcefully.

A disputed case can take 30 to 45 days. However, an uncontested FED ruling can be obtained in just 10 to 15 days. Evictions must be carried out by the local county sheriffs.

Another way to evict tenants with little notice is through condemnation by a third party.

Suppose a business is condemned by a local, state, or federal authority. In that case, leases on privately held land will end when the government acquires title.

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David Bitton

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!