Key Considerations Before Signing a Commercial Lease Agreement in Illinois
When considering signing a commercial lease agreement for a rental property in Illinois, there are several important factors to keep in mind:
- Term of the Lease: Ensure that the lease term is long enough to support your business planning, but not too long that it obligates you for an unreasonable amount of time.
- Rent Payments and Escalations: Determine any potential rent escalation clauses to ensure that there are no surprises. Verify that the rent payments are reasonable for both the space and the locality.
- Improvements and Alterations: Negotiate with the landlord to ensure that you can make changes that will accommodate your business needs. Be sure your lease agreement properly captures your negotiated agreement.
- Maintenance and Repairs: Know who is responsible for routine maintenance and repairs and what expenses will be passed onto the tenant. Consider negotiating landlord repair obligations to balance these requirements.
- Assignment and Subletting: Determine whether the landlord allows assignments and subletting of the space. This will come into play if you want to transfer your lease.
- Default and Termination: Know your rights if there is a breach in the lease agreement. Explore what would happen if you fail to pay rent or maintain any other requirements in the lease agreement.
- Insurance and Liability: Be aware of the insurance requirements and limitations in the leasing agreement. Proper liability planning can help ensure survival in the face of lawsuits.
These considerations are not exhaustive. For best results, review this document and cross-reference it with other lease requirements. Negotiate the protection that you feel best protects your investment. Hiring a reputable attorney to review and negotiate the lease agreement may also be beneficial for ensuring the agreement serves the intentions of both parties.
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