Commercial landlords in Fairfax, Virginia, risk a lot to invest in properties. They risk even more renting out to tenants and businesses they might not know a lot about.
To protect yourself as a commercial landlord, you need to know what to include in commercial lease agreements. From rental fees to rental agreement disclosures, these clauses can protect you from liability issues.
Keep reading to learn more.
Late Rent Fees
Commercial lease agreements should have a clause that discusses late rent fees. Late rental fees are exact amounts or reasonable estimates of the cost of late rent payments.
These fees should be applied with Virginia law in mind. The lease agreement terms should:
- Specify late fees
- Describe grace periods
- Clarify the consequences of non-payment
- Define grounds for lease termination
If late fees are continuous, commercial landlords might need to start the eviction process. This should be included in the lease as well.
Renewal and Rent Increases
When drafting a lease, it's important to consider the future. In Virginia, landlords have some flexibility when determining rent increases because there aren't any specific statewide rent control laws.
Some cities have their own requirements, so it's important to adhere to these regulations. To stay compliant, include clauses that:
- Address the lease renewal process
- Provide advance notice of rent increases
- Specify procedures for negotiating lease terms upon renewal
Commercial property owners can perform lease audits to maximize revenue. During the lease negotiation process, tenants may contest rent increases.
Security Deposits
Virginia Code doesn't specifically address security deposits for commercial properties. The lease provisions in place will control any disputes.
Most landlords choose to collect a security deposit to protect their investment. In the lease, detail these security deposit conditions if you decide to collect one:
- Specify the amount of the security deposit
- Describe the use of the security deposit
- Describe the conditions under which the security deposit can be withheld
A dependable commercial property management company can help you comply with local regulations on security deposits.
Rental Agreement Disclosures
Landlords should provide commercial property renters with disclosure information related to environmental hazards, such as asbestos and mold.
If the commercial building is not metered for gas or electricity, landlords must disclose this in the lease. This will help tenants determine the estimated cost of monthly utilities.
Failure to add rental agreement disclosures can result in legal issues for landlords in Fairfax, Virginia.
Commercial Lease Agreements: Must-Have Clauses
Commercial lease agreements in Fairfax, Virginia, should always include these clauses. They are some of the most important leasing factors, but they aren't the only ones.
If you want to perfect commercial leasing management, work with a full-service property management company. At PMI of Fairfax, we provide commercial property owners with the highest quality services.
We can keep you informed on your investments by taking over all administration processes. With more than 20 years of experience, you can trust our property managers to treat your property like their own.
Don't wait any longer to get started. Contact us today!
