Have you been tasked with drawing up a Utah commercial lease agreement? Because these agreements are between a landlord and a business entity and are typically valid for over 10 years, it is important to pay careful attention to what you include.
In this article, we'll give you everything you need to help you create a document that will hold you in good stead as you offer your commercial premises for rent.
A commercial lease is a legally binding contract between a landlord (property owner) and a tenant (business entity).
The landlord agrees to lease a commercial space in exchange for monthly rent. It stipulates the terms and conditions of renting a commercial property, such as an office, retail, or warehouse space.
There are three types of agreements, namely a gross lease, triple-net lease, and modified gross lease, that differ based on which party is responsible for expenses such as insurance, tax, and maintenance costs.
What to Include
Your rental agreement should include the following details:
- The names and personal details of both the landlord and tenant
- Information about the property and its physical address
- When the rent payment is due, how much the tenant will be responsible for paying each month, and late fees
- Details about the security deposit, including when the tenant is expected to pay
- The renewal process
- Who will be responsible for paying for the utilities, taxes, insurance, and maintenance
- The signatures of the tenant and landlord and the date must appear at the end of the document
According to federal and state law, the following disclosures must appear on commercial rental contracts:
- A landlord must disclose any known legal or zoning violations on the property to the tenant
- All lease contracts must contain a lead-based paint disclosure to notify the business of potential exposure to lead in buildings built before 1978
- Damaged sewer or septic tanks must also be disclosed in the rental agreement
Building a Lease
If you're wondering whether there's an easier way to create your own lease, then you'll be happy to know that DoorLoop has an innovative lease tool that lets you quickly and easily create the perfect rental agreement.
Now that you have the information you'll need to create the perfect Utah commercial lease, you can get started building your own. Sign up with DoorLoop today to access our custom creation tool!
Can landlords raise the rent?
Landlords may only increase the monthly amount if there is a clause in the lease allowing this.
Does a commercial rental contract have to be notarized in Utah?
No, this document does not need to be notarized. However, both parties can have it notarized if they choose.