A letter of intent to lease commercial property is a letter that is prepared by a landlord with the intention to offer to a tenant the basic terms and conditions of the future lease agreement. It serves as the basis for the further comprehensive agreement between a landlord and tenant but might already act as a binding agreement if the parties decide so. Show
A tenant who gets this form has to either accept or decline the terms. The acceptance of the terms has the form of a signature. The letter of intent to purchase real estate helps both parties enhance the process of negotiations and learn each other’s expectations before they enter into a formal agreement. Tips for Writing a Letter of Intent to Lease Commercial PropertyA letter of intent is the best chance for a landlord and tenant to learn each other’s intentions better. This is why to reach an agreement, a landlord or property manager should write a letter according to certain requirements:
How to Fill out a Letter of Intent to Lease Commercial PropertyStep 1 – Information about the parties and the effective date In the top left corner of the letter, include the name of the landlord, their return address, and contact information. The same information about the prospective tenant should be included beneath it. As well as that, mention the effective date of the letter. Step 2 – Address of the premises Next, write down the location of the rental space. Step 3 – Lease term The duration of the lease is one of the most important details that should be included in a LOI. It should tell when the lease starts and expires. Step 4 – The purpose Further, the LOI should specify how the leased premises will be used. Step 5 – Rent price The next step is to mention what amount of money the tenant should pay at a certain frequency. It is recommended to write the price both in text and numerically. Step 6 – Late rent In a LOI, there should also be a provision about what is considered late rent and what penalty the tenant will be charged if they don’t pay rent on time. Step 7 – Expenses This section should tell what additional expenses the tenant should pay along with the base rent. It might be common area maintenance or any other costs related to the rental property. Step 8 – Security deposit This part of the LOI should specify what amount of money will be paid to the landlord as the security deposit. Step 9 – Renewal of the lease The next information to include is whether the tenant can renew the lease at the end of its term. The section should tell what the tenant should do if the renewal is allowed (generally, send a prior written notice). Step 10 – Subletting The next detail in a LOI might be the landlord’s consent or non-permission to sublet the rental space. If subletting is allowed, the landlord might mention that it can happen only with a prior written notice of the tenant. Step 11 – Rent increase The landlord should include a section about the rent increase in case the tenant wants them to renew the lease. Step 12 – Binding effect The letter should clearly state whether it is binding or not so that parties understand whether or not they should create a more comprehensive agreement in the future. Step 13 – Governing law The landlord should mention what law is considered governing for the tenant and landlord. Typically, it is the law of the state where rental space is located. Step 14 – Acceptance It is also important to specify in the letter of intent how the landlord will understand that the tenant accepted their terms. Typically, it is signing the letter by the tenant and sending a duplicate copy of the letter back to the landlord. Step 15 – Signatures Signatures and print names of the parties are the last things to be included in a letter of intent. They make the LOI valid. There is no need to write down the letter of intent to rent commercial property from scratch. Use our printable template to fill in all the needed information. It will let you save valuable time. Sample Letter of Intent to Lease Commercial PropertyTo: Megan Rox April 4, 2021 From: Sidney Lockford RE: Letter of intent to rent commercial property at the address 980 Coffee Drive Corpus Christi, TX 78413 Dear Mrs. Rox, We are pleased to present the following proposal to lease the above-referenced property on behalf of Sidney Lockford. Sidney Lockford Published: May 18, 2022 How do you write a letter of intent for a commercial lease?The letter of intent should include the following six things:. A Statement Declaring Your Interest in Leasing the Space. ... . A Description of Your Company. ... . An Outline of On-Site Employees, Equipment, and Machinery. ... . Your Business Hours. ... . An Overview of Your Current Space. ... . Contact Details.. How do you write a proposal for a lease?What should be included in a lease proposal?. Details of the property including location, property boundaries, and permitted use of the property.. The start and end dates of the lease, which can also include a move-in date prior to the lease start date.. What questions should I ask before signing a commercial lease?Questions to Ask When Viewing a Commercial Property. What type of commercial lease is being offered? ... . What is the minimum lease term? ... . What amenities are included? ... . What insurance coverage is required? ... . How much parking is allotted to the renter? ... . Is there room for expansion? ... . Can you make changes to the office space layout?. How do you make an offer on a commercial lease?Tips for Tenants when negotiating a Commercial Lease. Be realistic about the lease term. ... . Ensure you have security of tenure. ... . Push for a break clause. ... . Clarify the rental fees. ... . Question any service charges. ... . Tread carefully around a rent review. ... . Limit your repairing obligations. ... . Remove restrictions around alterations.. |