What are the laws in Florida regarding commercial lease agreements and what specific clauses should be included or avoided to protect my business interests?
Florida law governs commercial lease agreements set between landlords and tenants. While the state does not have any specific statutes that require certain clauses to be included, it is essential for both parties to carefully consider the provisions in a lease agreement to protect their respective business interests. The following are some commonly included or recommended clauses that tenants should consider when reviewing a commercial lease agreement under Florida law.
-
Rent and Payment Terms:
The lease should define the rent amount and when it is due, including any late fees and penalties for missed payments. This clause should also specify how and where the rent is to be paid, and whether the landlord may change the rent amount during the lease term.
-
Maintenance and Repairs:
This clause outlines which party is responsible for the maintenance and repair of the leased premises. The tenant should negotiate for a detailed breakdown of the landlord's responsibilities, such as systems that will remain the landlord's obligation, and whether the tenant can deduct repair costs from rent payments.
-
Use and Occupancy:
This clause specifies how the leased premises can be used, and if there are any limitations or restrictions on the tenant's use. The tenant should ensure that its planned use of the premises is permitted under the lease agreement and local zoning ordinances.
-
Insurance:
This clause outlines the respective obligations of the landlord and tenant with regard to insurance coverage. It is essential to list the types of insurance required, who is required to carry such insurance, and how claims will be handled.
-
Termination and Renewal:
This clause spells out how the lease can be terminated, whether the lease term will automatically renew, and for how long. Tenants should ensure that they have sufficient notice of any intended termination, and that potential penalties are clear.
The above clauses are not exhaustive, and other provisions, such as those pertaining to assignment/subletting, default, damage, and dispute resolution should also be explicitly defined to ensure that both parties are legally protected. Tenants should approach lease agreements with an attorney, review the entire document carefully, and negotiate terms when necessary. The advice mentioned above is not a substitute for legal counsel, and should only be treated as general information.