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What is an exhibit in a lease?

Items that cannot be easily incorporated into the main body of text in a lease are customarily attached and referenced as an Exhibit. The most common exhibits to a lease are maps, drawings or plans showing the exact location of the premises leased (demised) in the lease.

Which of the following should be covered in a commercial lease agreement?

Base rent and monthly rent The contract must also explain if the rent includes or excludes property taxes, insurance, maintenance, utilities, and additional costs. If the rent is exclusive of these charges then the owner must specify the amount that the tenant needs to pay in regards to these expenses.

Which clause allows a landlord to increase the lease payment during the lease term?

An escalator clause allows rent to increase by a specified amount each period, allowing the landlord to benefit from current market conditions and the renter to secure a long-term arrangement. Sometimes escalator clauses include a cap on the allowed increases.

What is a lease renewal clause?

A renewal option allows for a lease to apply to a specified time period, but the lease can be extended for another term if agreed upon by the participating parties. Renewal options may have specifications or conditions, such as when the lessee must let the landlord know if they will be renewing.

What is the clause option to extend a lease?

In some cases, the clause may say that you can extend your lease with a new rent based on the current fair market value of your space at the time of renewal. Its also possible for landlords to insert clause that allows the rent to be increased with an extension based on changes in the consumer price index.

Is there rental agreement template in Word?

Yes, Microsoft Word has a free lease agreement template that you can customize to create your own contract and minimize any potential problems between tenant and landlord.

What is the expansion clause in a lease agreement?

Essentially, an expansion clause is a negotiable clause in a lease that allows the tenant a right to expand within the building they are leasing. There are three provisions that allow the tenant to expand the leased property: the option to expand, right of first refusal, and the right of first offer.

What is a rent escalation clause?

What is a rent escalation clause in commercial real estate? A rent escalation clause in commercial real estate is a clause in a lease agreement that specifies how often and by how much the rent will increase over time.

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