Facts About Commercial Leases

If you are a business owner and your company needs more room or you want to add a warehouse, it’s time to find a commercial space for lease Ottawa. Since this type of property requires a more complex agreement than a residential contract, it’s important to know what type of lease you need and understand how the rental process works. Here are some essential facts to guide you through this experience.

There Are Different Types of Leases Available

Owning a property requires payments to the bank, insurance, property tax and maintenance. When an owner lists their commercial building for lease, the lessee needs to know what fees the owner expects them to pay. The type of lease you sign designates what you are responsible for. In a single net lease, you pay the rent and property tax. A double net lease adds insurance, and a triple net requires you to pay the previously mentioned fees and the additional maintenance costs. On the other hand, if the owner covers all the fees and just collects rent, that is known as a full-service lease. These are the most popular types of contracts available and provide the most protection to tenants.

Leases Are Available for Short and Long-term

When it’s time to sign a lease, there are specific points you need to inspect for clarity and accuracy. The first thing you must do is look at the timeframe of the lease. If your business is just starting and funds are unsure, signing a lease for multiple years may be risky. On the other hand, if you are a well-established business and know that you are looking to operate at this location for a long time, signing a long-term lease secures that location for you. No matter what length of contract you desire, make sure you are well informed about the time frame expectations before you sign.

Rental Contracts Are Often Renewable

Regardless of the length of your lease, eventually, the end date arrives. When you review the lease agreement, make sure that the renewal process is clearly defined. Most of the time, tenants get first priority to stay within the rental property. However, once a contract expires, owners are allowed to change the type of lease they are offering and can increase rates, too. These options and terms are disclosed within the document, so ensure that you are satisfied with the renewal process.