Commercial leases in Florida and many other states tend to be more complicated than residential leases. Considering a commercial lease involves the usage of the premises for business activities, it also involves certain extra rules that both the landlord and tenant must be aware of.
On the contrary, a residential lease agreement tends to be simpler due to the fact that renting a home doesn't involve as many additional steps, such as disclosing particular information that could damage a business, sign placement, advertising, how security deposits will get used, and others.
Today, we'll cover how the Florida commercial lease agreement works and everything that landlords must keep in mind before renting their property, according to Florida statutes.
Before we dive into the specifics of a lease agreement in Florida, it's vital to note that landlords can work with one out of three options for the leased premises. All three are valid, and it's up to the landlord to decide which one goes in their best interests.
Landlords must ensure that all of the conditions for renting their commercial space are as clear as possible in this legally binding document; that way, they can avoid several legal problems in the future.
Lease agreements are different in every state, and Florida isn't the exception to this rule. When it comes to renting commercial spaces in Florida, there's a wide set of special rules you must consider before signing the lease agreement document.
The following section will outline everything that a commercial lease agreement in Florida should include, as well as the consequences if the landlord/tenant fails to comply with any of these rules.
When it comes to lease terms in Florida, there aren't many specific rules regarding rent and the security deposit. The landlord must include a clause specifying the rent amount, when it's due, and where it can be paid. In case the landlord wants to include late fees in the lease agreements, they can have an extra clause with the amount and the date in case the tenant refuses or fails to pay rent on time.
In most cases, tenants have to pay the first month of rent before they move into the property.
Regarding the security deposit, the tenant is responsible for any damages caused to the property during the term. The landlord can include the amount they consider appropriate for the security deposit and where it will be paid.
Finally, we have renewals. Typically, a commercial lease agreement will be much longer than a residential lease agreement since most business owners will not want to change business locations every few months. The landlord must include a clause that specifies what the tenant can do to renew the lease or if they're going to work with automatic renewals.
Every business property in Florida must comply with Florida laws in general. Moreover, the business must have all the documentation, permits, and licenses necessary to operate in the state. The commercial leases must include this information.
The following is a list of other factors that should never go missing in your lease agreements in Florida. Make sure to add all of them to prevent any legal problems in the future.
Improvements to the Leased Property: In case the tenant must provide the property with any improvements to fit their business needs, the landlord must include information in the lease agreements regarding what they can and cannot do.
Some landlords provide their tenants with a build-out period where they can make improvements without having to pay rent during that period. However, this is up to the landlord.
Depending on the business, the tenant may need a parking space for them and their employees. These parking spaces should be near the store building. Some landlords charge an extra amount of money for any additional parking spaces the tenant needs.
All commercial lease agreements must include a final section for the landlord and tenant to sign. While lease agreements don't necessarily need to get notarized in Florida, some landlords prefer to go through that process.
There are three legal options every landlord can take if the tenant breaches the commercial lease agreement:
Landlords can evict their tenants for any of the following reasons:
However, if the landlord wants to start eviction proceedings, they must first send a written notice to the tenant. In case the tenant doesn't vacate the premises within a reasonable time period, the landlord may start the eviction lawsuit.
When the tenant's possession term for the property ends, they must vacate within a reasonable period. However, if they fail to do it by the end of the term, landlords are legally allowed to seek any of the following options:
Other vital clauses include:
Although these aren't strictly necessary for all business purposes, landlords may choose to include one of the following in the official document for the lease:
The following is a list of particular considerations that landlords in Florida must include in the commercial lease:
In essence, every tenant in Florida must comply with the following rules:
On the other hand, each landlord must comply with the following:
If either the tenant or landlord fails to comply with these rules, they may experience legal problems in the future.
Florida law states that landlords aren't required to ensure the suitability and fitness of a property. Tenants must check the condition of the property before signing the lease. Otherwise, the landlord cannot be held liable for any injuries sustained by something that was present since the lease started.
Landlords can include a clause on fitness and suitability to prevent these problems from happening. On the other hand, if the commercial lease includes a future renovation, the landlord can provide an implied warranty of fitness and suitability.
According to Florida law, specifically, the Statute of Frauds, any verbal commercial lease that goes for over a year is considered void. To prevent this issue from happening, any commercial lease that goes for over a year must be put in writing.
Every rental agreement in Florida must include the following disclosures to avoid problems with the future tenant:
All landlords in Florida must include a warning in the document if there's any radon gas in the property, as well as its current levels. Moreover, they must include information regarding the health risks that come from getting exposed to this gas, as well as the address of sites where people can get tested for exposure.
If the property was built before 1978, landlords must include a clause in the lease regarding the presence of lead-based paint in the property. Overall, lead paint can be dangerous for children and pregnant women, so it's vital for the tenant to be aware of all the risks.
Drafting a rental application contract tends to be time-consuming, especially with commercial properties. Thankfully, you can now download a Florida commercial lease agreement template today to make things easier.
To download the template, you can select the "Commercial Lease Agreements," option, find your preferred state, and choose the format you like. You can choose to download the template in either Word or PDF format.
Moreover, you can choose to customize your commercial lease agreement template document so that it's perfect for your particular renting needs.
Florida laws aren't as complicated as they seem, so all it takes for you to draft a contract that benefits all parties is a matter of time and patience. Still, if you don't want to spend time writing everything yourself and focus on choosing an appropriate base rent amount, rules for security deposits, and other factors, you may download a template today and fill it out with the information that best suits your rental space.
In the end, remember that the point of a commercial lease is to protect the rights of both the tenant and landlord, which is why it's so important that the document outlines every small detail that all parties should know before signing.