Contributed By Allen Matkins Leck Gamble Mallory & Natsis LLP
Traditional lease terms specify the size and location of premises, the rent, operating and tax expenses, the length of the term, the construction that the landlord will do to the space, and allowances – ie, funds given to the tenant to improve the space. The length of a lease is usually five to ten years, and sometimes 15 years.
Tenants repair their own premises. Landlords are responsible for all other repairs. This can be subject to negotiation – for example, whether a particular roof repair is considered building maintenance or a tenant responsibility. The best leases specify such costs in detail. In reality, landlord costs are passed through to the tenant in the form of rent.
Rent is paid monthly, due at beginning of the month, as well as operating expenses and taxes. Some leases may require one month’s rent in advance as a security deposit.