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Straightforward guide on how to Save Commercial Lease Agreement

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How to Save Commercial Lease Agreement

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In this video, Peter Harris, co-author of "Commercial Real Estate Investing for Dummies," discusses the master lease agreement as a viable method for purchasing commercial real estate without extensive experience, credit, or significant down payment. He highlights its applicability to various types of commercial properties, including apartments, office buildings, strip centers, mobile home parks, and storage facilities. The master lease agreement allows buyers to avoid traditional bank financing while generating income from the property. Harris references the Empire State Building as a notable example, which has maintained a master lease for over a century.

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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What is the most important consideration in a commercial lease?

The rent structure is probably the most basic and most important aspect of any lease. By determining how much you pay per month, as well as how much your rent will increase each year, you can better determine budgets and get a full understanding of whether you can stay in business in this new space.

Can my landlord increase my commercial rent?

Know your rights. It is not unreasonable for a landlord to increase rent at the end of a tenancy. The amount could reflect inflation, a rise in property values, local demand for space or historically low rent being brought in line with surrounding properties.

Is there rent control on commercial property in Ontario?

The CTA does not regulate rent increases. Commercial tenancy agreements should specify the amount of rent charged and frequency of rent increases. If there is no tenancy agreement, the landlord can increase the rent by any amount at any time.

What is the best way to negotiate a commercial lease?

5 Tips for Negotiating a Commercial Lease Evaluate the Length of the Lease. Research Comparable Rents. Look for Hidden Costs. Ask for Favorable Clauses. Check the Termination Clause Closely.

What is the commercial rent increase for 2022 Ontario?

In Ontario, rent increases are governed by strict guidelines set by the provinces LTB. For 2022, this amount was fixed at a maximum of 1.2%, and for 2023 the maximum was 2.5%.

What is the legal commercial rent increase in Ontario?

How Much Can Commercial Rent Be Raised in Ontario? Legally speaking, theres no limit on how much you can increase the rent by every year as a landlord. This not only applies to commercial properties but also to social housing units, nursing homes, and vacant residential units.

What is the commercial rent increase for 2023 Ontario?

The rent increase guideline for 2023 is 2.5%. The guideline is based on the Ontario Consumer Price Index, a measure of inflation calculated monthly by Statistics Canada that reflects economic conditions over a 12-month period (June to May).

How do you escape a commercial lease?

Business leases: how to end a lease Obtaining possession or vacating during the fixed term of a lease. Vacating on the last day of the fixed term. Security of tenure, periodic tenancies and holding over. Gaining possession when the lease term is periodic. Forms required.

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