Experts of real estate law in Mississauga tell you about various types
of business leases
Business lease or renting a
commercial property can get complicated if you're not aware of the various know
hows. Many people don't even know the types of business leases and get
perplexed when they're asked to pay the extra cost which was mentioned in the
agreement but they simply didn't know it.
Real Estate Law experts at NDM Law hereby tell about the types of business
leases and what all costs you'll be expected to pay apart from rent.
Gross Lease
These are the most common leases
signed these days. When a landlord rents you an office space, you'll be asked
to pay a fixed standard sum every month. That amount will exclude building
operational costs, insurance, taxes, repairs, etc. All the extra costs and
building maintenance will be looked after by the landlord.
Net leases
In case of net lease, tenants pay,
in addition to the base rent, a part or whole of the real estate taxes
applicable on the said business premises. Except for taxes, operational costs,
insurance, repairs etc come under the sole responsibility of landlord.
Net-Net Lease
Just remember that with each “net”
payment responsibility of the tenant increase by a notch. In this case, the
tenant has to pay for taxes and insurance apart from the base rent. Landlord
will be responsible for building operational costs, repairs, maintenance etc.
Net-net-net / “triple
net” lease
These are not common leases and are
particularly seen in cases of industrial property rentals such as a factory. In
these types of leases, renter pays for building operational costs, repairs,
maintenance, insurance, and real estate taxes in addition to the base rent.
Percentage lease
In case of a percentage lease,
tenant pays a fixed sum and a fixed percentage of his/her gross income as rent.
This lease is prevalent in shopping centres etc.
A business lease is a legal document
and one should always consult real estate law firms before entering into such
an agreement. A single loophole if overlooked can cost you unwanted expenses.
For advice on real estate laws inMississauga, contact NDM Law.
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