Business leases are important agreements that may affect the viability of a business and requires the guidance of an experienced attorney to fully comprehend even the tiniest detail.

The terms of the lease, the type of lease, the rent, security deposit, etc., has to be carefully negotiated to get the maximum benefit. If the area is in demand, the lessor gets the upper hand in the negotiations. A long-term gross lease will be ideal for any business where as a graduated lease will greatly benefit start up companies.

The option to renew, the annual rate of increase in the rent, the rent for the renewal period, or if it’s to be fixed at the time of the initial lease agreement, has to be decided upon.

The Lessee and the lessor can inspect the property together and sign a document stating the condition of the premises before tenant occupation. It will be better for the lessee to negotiate a sub lease clause.

The lessee has to agree to maintain the property well; paying for the utilities, etc. He has to follow the building rules and regulations involving the parking area and common area usage too. Signs or hoardings can be used in the property only after obtaining permission from the lessor.

The lessee has to pay for any damages or repairs caused to the property during his occupancy.

The landlord has to provide adequate insurance coverage for the property, especially fire coverage. It will be advisable for both parties to have general liability insurance too.

Property taxes for the personal property of lessee and lessor have to be paid by both individuals.

In case the lessee is delinquent in paying the rent, a notice of default {usually three days time} is served, giving 30 days to the lessee.

The landlord has the right to inspect the property as well as authorize and carry out repairs that are necessary.

The lease is not affected by the sale of the leased premises and the security deposit has to be returned by the new owner.
The lessor may use a “for-rent” sign 60 days prior to the end of the lease term.

It is essential to make sure while establishing a business lease in Colorado that all legal owners of the leased premise sign the lease agreement. These are some of the essential factors contained in a lease agreement.