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Commercial Letting/Business Lease



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THIS LEASE (this "Lease") dated this ________ day of ________________, ________


______________________ of _________________________________
Telephone: ______________________  
(the "Landlord")


- AND -

______________________ of _________________________________
Telephone: ______________________
(the "Tenant")


IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties to this Lease (the "Parties") agree as follows:

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Last Updated February 27, 2024

Commercial Tenancy Agreement Information

A Commercial Tenancy Agreement, also known as a Business Lease or a Commercial Lease, is used when the owner of a business property wishes to rent space to another business owner. Both parties may either be individuals or corporations.

This Commercial Tenancy Agreement encompasses properties such as office buildings, industrial space, restaurants, retail shops, and warehouses within England, Wales, Scotland, and Northern Ireland.

What is the difference between a long and short Commercial Tenancy Agreement?

The short version of your Commercial Lease will include basic information and clauses to protect both the landlord and the tenant in the agreement. It does not include any information that is not necessary and only includes standard clauses.

The long version of your Commercial Lease will include a number of extra clauses and terms that will make your agreement much more detailed. The long version also allows you to revise clauses after completion.

If you are creating a simple lease and don't require many details, the short version may work best for you.

If your landlord/tenant agreement is complicated and requires a number of additional clauses, the long version of the Commercial Lease is recommended.

What is included in my Commercial Tenancy Agreement?

A Commercial Lease will include information such as:

  • Personal information about both the landlord and tenant, such as contact information
  • Whether a guarantor will be required
  • Property-specific details, such as the size of the space being rented
  • Letting information, such as the price of rent, length of the agreement, and how the premises may be used
  • Whether the tenant will receive exclusive use of the property
  • If renovations or improvements will be allowed, and if they need to be approved

What are a landlord's responsibilities in a Commercial Tenancy Agreement?

In a Commercial Lease Agreement, the owner of the property will generally be responsible for:

  • Upkeep of the commercial building or property
  • Seasonal maintenance tasks, such as snow removal or landscaping
  • Ensuring that the building or property meets safety and health requirements
  • Collecting rent payments, and if applicable, utility payments
  • How the tenant will be allowed to use the property

A landlord will also be responsible for ensuring that rent payments are allocated to the lender if the property is mortgaged, as well as for providing insurance for the property itself.

What are a tenant's responsibilities?

In a Commercial Lease, the tenant of the business property is usually responsible for:

  • A portion of the total utilities cost, unless they are required to pay the provider directly
  • The cost of minor improvements, such as paint, office supplies, etc.
  • Rent for the space provided
  • Sometimes, tenants are responsible for taxes associated with the property

What are the lease terms for Commercial Letting Agreements?

There are three different types of lease terms in a Commercial Lease in order to accommodate different landlord/tenant situations and preferences, including:

Fixed End Date: A lease term that ends on a set date. For example, if a letting term lasts for a year and it began on May 1st, it will end the following year on the same date.

Fixed end date agreements may be for any number of weeks, months, or years. At the end of the term, you may renew your agreement, terminate it, or continue to let the property on a month-to-month basis.

Fixed Number of Weeks/Months/Years: A fixed number of weeks/months/years means that the property is being let for a certain amount of time. This could be any number of weeks, months, or years.

In this type of agreement, neither party is required to give notice at the end of the term. The lease simply terminates on its own. Once the term has ended, the landlord and tenant can renew the terms, continue on a month-to-month term, or part ways.

Periodic: A periodic tenancy continues until either the landlord or tenant terminates the lease by providing notice to the other party. These types of Commercial Tenancy Agreements are ongoing and are beneficial for long-term tenancy relationships.

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