Michigan Sample Basic Commercial Lease Agreement

• Category: Landlord Tenant - Commercial Leases
• State: Multi-State
• Control #: US-0784-WG
• Format: Word; Rich Text

Description

This commercial lease form is a detailed written agreement for the rental by a tenant of commercial property owned by the landlord. Commercial property differs from residential property in that the property's primary or only use is commercial (business oriented), rather than serving as a residence. Commercial leases are often more complex than residential leases, have longer lease terms, and may provide for the rental price to be tied to the tenant business's profitability or other factors, rather than a uniform monthly payment (though this is also quite ordinary in commercial leases). The Michigan Sample Basic Commercial Lease Agreement is a legally binding document that outlines the terms and conditions between a landlord and a tenant for the lease of a commercial property in the state of Michigan. This agreement is specifically designed for commercial leasing purposes and provides a comprehensive framework for both parties to safeguard their rights and obligations. The Michigan Sample Basic Commercial Lease Agreement covers various important aspects, ensuring clarity and addressing potential issues that may arise during the leasing term. The agreement typically includes sections that cover the following: 1. Parties: Identifies the landlord and the tenant, clearly stating their legal names and contact information. 2. Property Details: Specifies the commercial property's address, including the unit number, if applicable. It may also include the property's dimensions and any zoning restrictions. 3. Lease Term: States the duration of the lease, whether it is for a fixed term or on a month-to-month basis. This section may also outline any renewal options or provisions for early termination. 4. Rent Payment: Outlines the base rent amount, due date, and preferred method of payment. It may also include information about late fees, if applicable. The agreement may mention any additional charges or expenses, such as utilities or maintenance fees. 5. Security Deposit: Describes the amount of the security deposit required, as well as the conditions for its refund or deductions upon lease termination. 6. Maintenance and Repairs: States the responsibilities of both parties regarding property maintenance and repair obligations. It may specify who is responsible for repairs, such as structural, electrical, plumbing, or cosmetic maintenance. 7. Improvements and Alterations: Outlines the terms and conditions for making alterations or improvements to the leased premises. It may include obtaining prior consent from the landlord, requirements for permits or licenses, and who bears the costs. 8. Use of Premises: Specifies the permitted use of the commercial space, ensuring it aligns with local zoning laws and regulations. Additionally, it may include provisions that prevent certain activities or businesses from operating on the premises. 9. Insurance: States whether the tenant is required to obtain liability insurance and identify the necessary coverage limits. The agreement may also outline the landlord's insurance responsibilities regarding the property. 10. Default and Remedies: Describes the actions that can be taken by the landlord in the event of non-compliance or default by the tenant, such as eviction or legal action. This section may also outline any grace periods or notification requirements. 11. Governing Law: Establishes that the lease agreement is governed by the laws of the state of Michigan, ensuring legal validity and enforcement. In addition to the Michigan Sample Basic Commercial Lease Agreement, there may be different variations or types of lease agreements available to cater to specific commercial properties or business needs. These may include Triple Net (NNN) leases, which require the tenant to pay for property taxes, insurance, and maintenance costs, as well as Gross leases, where the landlord covers most of these expenses within the rent amount. Other types could be Ground leases, Percentage leases, or Short-term leases, each offering unique provisions and conditions tailored to different commercial leasing situations.

The Michigan Sample Basic Commercial Lease Agreement is a legally binding document that outlines the terms and conditions between a landlord and a tenant for the lease of a commercial property in the state of Michigan. This agreement is specifically designed for commercial leasing purposes and provides a comprehensive framework for both parties to safeguard their rights and obligations. The Michigan Sample Basic Commercial Lease Agreement covers various important aspects, ensuring clarity and addressing potential issues that may arise during the leasing term. The agreement typically includes sections that cover the following: 1. Parties: Identifies the landlord and the tenant, clearly stating their legal names and contact information. 2. Property Details: Specifies the commercial property's address, including the unit number, if applicable. It may also include the property's dimensions and any zoning restrictions. 3. Lease Term: States the duration of the lease, whether it is for a fixed term or on a month-to-month basis. This section may also outline any renewal options or provisions for early termination. 4. Rent Payment: Outlines the base rent amount, due date, and preferred method of payment. It may also include information about late fees, if applicable. The agreement may mention any additional charges or expenses, such as utilities or maintenance fees. 5. Security Deposit: Describes the amount of the security deposit required, as well as the conditions for its refund or deductions upon lease termination. 6. Maintenance and Repairs: States the responsibilities of both parties regarding property maintenance and repair obligations. It may specify who is responsible for repairs, such as structural, electrical, plumbing, or cosmetic maintenance. 7. Improvements and Alterations: Outlines the terms and conditions for making alterations or improvements to the leased premises. It may include obtaining prior consent from the landlord, requirements for permits or licenses, and who bears the costs. 8. Use of Premises: Specifies the permitted use of the commercial space, ensuring it aligns with local zoning laws and regulations. Additionally, it may include provisions that prevent certain activities or businesses from operating on the premises. 9. Insurance: States whether the tenant is required to obtain liability insurance and identify the necessary coverage limits. The agreement may also outline the landlord's insurance responsibilities regarding the property. 10. Default and Remedies: Describes the actions that can be taken by the landlord in the event of non-compliance or default by the tenant, such as eviction or legal action. This section may also outline any grace periods or notification requirements. 11. Governing Law: Establishes that the lease agreement is governed by the laws of the state of Michigan, ensuring legal validity and enforcement. In addition to the Michigan Sample Basic Commercial Lease Agreement, there may be different variations or types of lease agreements available to cater to specific commercial properties or business needs. These may include Triple Net (NNN) leases, which require the tenant to pay for property taxes, insurance, and maintenance costs, as well as Gross leases, where the landlord covers most of these expenses within the rent amount. Other types could be Ground leases, Percentage leases, or Short-term leases, each offering unique provisions and conditions tailored to different commercial leasing situations.