Property value is something that regularly increases over time. Especially for properties that have a great potential for business and commerce. Now the best thing if you have a spare property like the one I’ve just described is to take advantage of the demand in the area and establish a potentially profitable business. Because that’s how business works. try to get the demand of the area and take advantage of it as best you can. However, you may not have the resources nor the time do it yourself. Maybe you have prior engagements in mind or you already have your own business to do yourself. So the second best thing to do here would be to rent or lease your property to a prospective client or your tenant.

With this setting, they can establish their own business, while you can just sit back and still earn some money from the rental payments. A good tool to use in making sure that you and your client is on the same page regarding the tenancy and the provisions of the whole duration of the lease is a commercial rental proposal.

Like other proposal documents, it doesn’t actually propose anything to your prospect, but rather make sure that they understand the parameters of this lease and that both of your goals are aligned. As a landlord or a property owner, it is important that you draft a well written proposal if you are planning to rent your property or establishment. Rental proposals protect your rights as a property owner and the welfare of your property itself. Aside from working as a working contract between you the landlord and your tenant, the document also protects you when you and your client ever come across a legal issue. The document and its contents as a proposal, agreement, and contract altogether will make you have a more favorable outcome in the court of law.

The document makes sure that whatever your client may be doing with the commercial space, is well within the scope of your proposal that you both have agreed to. It saves you a whole lot of money and even more trouble by steering you and your property away from disaster. There have been some pretty interesting case of landlords being cheated away from their own properties because they lack the sufficient documentation to defend themselves. That is why before any business are accomplished, it’s important that you can hand your client a commercial rental proposal. Draft this document properly by first checking out these commercial rental proposal samples that we have listed down below. Once you’ve acquainted yourself with the document more, what it looks like and how it works, feel free to use these samples as guides or maybe even as templates for your own rental proposal.

3+ Commercial Rental Proposal Samples

1. Commercial Rental Proposal

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2. Commercial Rental Property Proposal

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  • PDF

Size: 704 KB


3. Sample Commercial Rental Proposal

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  • PDF

Size: 135 KB


4. Commercial Rental Proposal Example

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Size: 992 KB


What Is a Commercial Rental Proposal?

A commercial rental proposal is a document that serves as the contract between the owner of the property and the client or the person who will lease said property. It defines the terms of the tenancy and the rules and regulations that will be set in place for the duration of the lease. You can have a bit of freedom yourself when writing your own rental proposal because it is your property.

A lot of proposals are about short-term rentals, usually for around 30 days, while longer ones are more commonly known as a lease, lasts for not less than a year per contract. A rental proposal is a very useful tool especially if you want to make sure that your client is reliable enough to use the property, not cause trouble or any physical damages to the property itself. Rental proposals work almost just the same as lease proposals. I say almost because rental proposals are easier to end and terminate due to its fairly short coverage of time while lease proposals cover multiple years most of the time.

How to Write a Commercial Rental Proposal

A rental proposal has to include specific provisions to make sure that the document does its purpose of protecting you and your property. It’s common for property owners to have the document drafted by their own attorneys and legal advisors. More specific provisions may be included, depending on the nature of the business to be done in your property or just the nature of the property itself. Regardless of the document’s shape and form, a rental proposal should be able to cover at least the following.

1. Identify the parties to the agreement and the address of the site

List down the names of the people that will be using your property and provide your own details as well. Include names, the address of the property, closest landmark, and the description.

2. Terms of the rental

State how long the rental will be and make sure that they have a full grasp of the dates. Start the term on the first of the month and include how much time should be allocated for the notice you or your client has to provide should either of you decide to terminate the partnership.

3. Rent and security deposit

State the exact amount of the monthly rental and include the payment methods the client should use. Whether you accept cash or card, checks, or online payments. Include the mailing address if you want your client to send checks every payment period, and clarify the interest rates for late fees, just make sure that it isn’t excessive.

4. What comes with the rental

State whether the property comes with amenities and utilities. Electricity, heat, gas, cable, etc. If that is not included, then specify the client’s responsibilities for their own utilities.

5. Pets

Inform them if pets are allowed on the premises. If you are strict about the no-pet policy, then make sure that you state that in your document.

6. Name of occupants

Inform them if you don’t want additional occupants in your property other than the client themselves. List the names of the occupants and only those in the list will be accommodated.

7. Landlord’s access to the property for repairs, maintenance, and inspection

Be clear and specific with the notices that you will be sending out prior to your repair or maintenance visit, other than for immediate emergencies. Some local communities have their own policies regarding the maintenance of each property or building, while some states have consistent requirements for the whole territory.

8. Rules of the rental

Make a list of the things that you do not expect your tenants to do. Illicit activities, smoking in and around the area, and the property’s closing time. Inform them that you’ll terminate the rental if the client fails to follow these provisions.

9. Property damages

Let your client know that they are responsible for any damages incurred on the property other than natural wear and tear. The client must be able to turn over the property in its original condition when it was leased.

10. Signature

After both of you has agreed with the proposal, both you and your client should sign the document for binding. You can also have your local attorneys sign it for legal binding.


How long is a lease good for?

Leases usually last for at least one year, however, it is pretty normal for leases to last for far longer.

Who pays the rental agreement?

The tenant or the client usually bears the costs associated with the agreement or proposal.

What is a commercial lease proposal?

A lease proposal is drafted when a tenant is looking to lease a commercial space from a landlord or a property owner.

Renting your own property can have its own fair share of risks, and most often more compelling than others. However, as long as you have a well written proposal, with the elements we’ve listed above and by using the templates that we’ve provided, you’ll be able to protect yourself and your property from a world of trouble.

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