Real estate property values are something that increases overtime. Especially for properties that are smack in the middle of a city’s business and commercial district. There can be so much potential for businesses in such spaces, even more if there is a significant demand for certain products and services in the market. The best thing that you can do if you have your own property is by taking advantage of the demand and setting up a potentially profitable business venture. Since that’s simply how business works, take advantage of the demand in the market. Now it can also be a case where the demand may be entirely too different from what you originally produce, or you may have another prior engagement that needs your full attention somewhere else. Another thing you can do with your property is by leasing it to prospective clients. That way, they can establish the business venture that they want, and you will still earn money from the rental payments. If you do plan to lease your property, one of the best tools you can use to make sure that you and your client is on the same page with the whole provision of the agreement is a commercial lease proposal.
Like the other proposal documents out there, the document doesn’t actually propose anything to the client, but works as a reply to when the prospect asks for your terms and conditions regarding the lease. As a landlord or property owner yourself, it is important that you are able to provide your client with a well-written lease proposal to also be able to protect your rights as the owner of the property and just protect the overall welfare of the property itself. Aside from being a working document between you and your tenant, it also protects you when both entities ever come across a legal issue. The document, with its contents as a proposal, agreement, and contract, will give you a significant advantage in the court of law. The proposal document makes sure that whatever your tenant may be doing in the rented property, is well within the provisions that bot of you have agreed to. Basically it just saves you from total disaster and a large loss of your money. There have been some pretty baffling cases of landlords being cheated away from their properties just because they lack the sufficient documents to defend themselves. That’s why it’s better to have one drafted specifically to the lease agreement that you can provide to your client. It’s just better to be safe really. Make sure that your document is well drafted and well written by checking out these commercial lease proposal samples that we have listed down below. After you’ve acquainted yourself with the document, what it looks like and how it works, feel free to use these samples as guides or maybe even as templates for when you write your own lease proposal.
10+ Commercial Lease Proposal Samples
1. Commercial Lease Proposal Template
2. Commercial Real Estate Lease Proposal Template
3. Commercial Warehouse Lease Request for Proposal
4. Management Company Commercial Lease Proposal
5. Commercial Lease Broker Request for Proposal
6. Commercial Lease Space Request for Proposal
7. Commercial Property Lease Request for Proposal
8. Commercial Retail Lease Proposal
9. Community Commercial Lease Request for Proposal
10. Commercial Building Lease Request for Proposal
11. Commercial Lease Bid Request for Proposal
What Is a Commercial Lease Proposal?
A lease proposal is a document that the landlord or property owner uses as a reply to their client’s inquiries regarding the terms and conditions or provisions of the lease that they will be taking into account. The document outlines the property that is being considered and the conditions of the landlord that it requires from its tenants. It allows prospective clients to review the proposals from multiple properties to compare and see which terms and conditions fit them best. Property owners can have a bit of freedom in drafting the document since it just talks about their own property. The document is a very valuable tool especially when landlords want to make sure that their clients are reliable and trustworthy enough not to cause trouble and incur any damages to the property itself. Lease proposals are much harder to handle than rental proposals due to the nature of the agreement itself. While rental proposals only typically last for around 1-2 months, lease proposals have at least a year for the duration of the contract, making it a lot more complicated to terminate.
How to Write a Commercial Lease Proposal
A lease proposal has to cover several specific provisions to make sure that the document does its job of protecting you and your property. It is largely common for landlords and property owners to have their attorneys and legal advisors draft the document for them to cover every legal aspect of the document. More provisions may be included in the draft, but that is largely dependent on the nature of your property or the nature of the business that will operate in your property. Regardless of the document’s shape and size, you need to cover every legal aspect of the lease.
Give your document that proper title of “Lease Proposal”. Specify the property number or solicitation number that is provided in the listing. Include the dates of when the listing took place.
Describe the environment that your property is in. Include the name of the building, the physical address, city, state, and the ZIP code. Give specific descriptions of the building if you are unable to provide the exact address.
Give specific details of the space that is going to be leased. Include a description of the floor plan, the total measurements of the area and the rate per square foot. These will provide details of how the rate is broken down to arrive to the payment that you have set.
Calculate the rental fee per month of per term using the measurements that you have taken for the previous section and break it down for the tenant. Show and explain how you’ve arrived to that certain amount.
- Additional information
Highlight the additional points of your property like additional parking and storage spaces and the available parking space per person in the unit. Some states may have different parking fees in every property so be sure to include that detail in the document as well.
- Renewal options
Highlight the differences between the initial lease proposal and the renewal of the agreement. Specify if you have an increase in rent every term or if you’d like to change from a yearly payment period to a month-to-month agreement.
Make sure to provide a space where both the landlord and the client can sign the proposal for binding.
What is the difference between a lease and a rent?
The difference between a lease and a rent largely lies on the period of time that they cover. A rental agreement usually lasts for only a short term, around 1-2 months, while leases lasts for at least 12 months and even more.
Is a lease proposal a binding document?
Having both parties sign to a lease proposal results in a binding agreement, regardless if one of them do not necessarily agree to the terms of the lease.
How long is a lease good for?
Leases usually last for at least a year, but it is pretty normal for leases to last for far longer than that.
Renting or leasing your property can have its own fair share of risks, often more compelling than others. We’ve already covered how important a lease proposal is for lease and rental agreements above. And with the help of our tips and the templates that we’ve provided, you’ll easily be able to write and draft a winning commercial lease proposal.
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