Commercial rental agreements in Florida tend to be more complex than rental agreements associated with residential properties. This type of agreement requires a landlord to lease the premises of a property for business purposes, which has additional rules for all the parties involved.
In this article, you will find out how to make a legal commercial rental agreement in Florida.
Florida Commercial Rental Agreements vs. Residential Rental Agreements
Compared to commercial rental agreements, residential leases are more straightforward. Several terms of average commercial leases do not exist in contracts to rent residential property, such as:
- The duty to disclose information that could hurt the leasing company’s operations, finances, or reputation
- Sign placement rules
- A detailed description of the usage of security deposits
Another aspect of the commercial rental agreement that is not positive for tenants is that they do not enjoy the same protections as residential tenants. Hence, working with an expert lease attorney from negotiation to the post-closing stage is fundamental to guaranteeing a successful commercial lease.
Drafting a Florida Commercial Rental Agreement – Does it Necessarily Favors the Landlord?
There are three main types of commercial lease agreements in Florida – gross leases, triple net leases, and modified gross leases. Gross leases tend to be more tenant-friendly, as the landlord must assume costs associated with taxes, maintenance, and insurance.
Conversely, triple net leases place the burden of paying taxes, maintenance-related expenses, and insurance on the tenant’s shoulders, which means several costs in addition to rent.
A modified gross lease is often the best option, as it offers a combination of the best of both worlds. In this type of agreement, a commercial landlord and a tenant can share the responsibilities to guarantee both parties end up satisfied.
Drafting a Florida Commercial Rental Agreement – Essential Terms and Conditions
In Florida, the items included in a commercial rental agreement may broadly vary according to the terms and conditions negotiated between the landlord and the tenant. However, there are key elements that must be included in any valid agreement, such as:
- The landlord’s name
- The tenant’s name (either the personal name or business name)
- The address of the leased property
- A detailed description of the property
- How the leased premises will be used by the tenant’s business
- The term of the agreement (the start and the end date of the lease)
- The type of lease (gross, triple net, or modified gross)
- The utilities used by the tenant’s business (and the party responsible for them)
- Security deposit-related terms
Additional clauses may include early termination clauses, exculpatory clauses (one party waives or limits the other party’s liability in certain circumstances), assignment and subletting clauses, etc.
Maintenance and repairs are often a reason for disputes. Hence, it is a good idea to specify which party is responsible for the necessary repairs or maintenance tasks required in the leased premises.
In the past, one of the validity requirements of a commercial rental agreement included the signature of both parties in the presence of two subscribing witnesses. A recent bill signed into law by Governor Ron DeSantis waived this statutory requirement, which means the witnesses are no longer required to ensure the validity of a lease.
How To Make a Legal Commercial Rental Agreement in Florida – Immediately Consult with an Expert Lease Attorney
With years of experience helping entrepreneurs to succeed, Attorney Romy B. Jurado willingly wants to help you as well. Waste no time – call us at (305) 921-0976 or email [email protected] for expert legal guidance.