California Lease Real Property Contract San Diego
California Lease Real Property San Diego Summary
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• Know with certainty the term of the lease you are signing;
• Understand what the base rent is and how it will change over the course of the lease;
• Understand what the triple net is and how it will change over the life of the lease;
• Know in advance the limitations placed on the use of the premises; and
• Be aware of the financial responsibilities the tenant assumes for maintenance.
California Lease Real Property Contract San Diego Details
Commercial leases are contractual instruments entitling a person or business (the tenant) other than the property owner (landlord) to possess and occupy all or part of a parcel of real property, or an office, warehouse, retail space, or other commercial building.
At a minimum, a commercial lease must identify the landlord and tenant, describe the premises to be leased, specify a term for the lease, and specify the consideration for the lease.
It is worth mentioning that commercial leases are much more complex than residential leases in the State of California. For example, many commercial leases require a tenant pay real estate taxes, or a pro rate share of real estate taxes, for the leased property to insure the leased property for the benefit of the landlord and assume financial responsibility for the care and maintenance of the property, including appliances like water heaters and air conditioning units. Such inclusions are referred to as triple net and, depending upon the age and condition of the property, may be significant expenses compared to the base rent amount. Triple net may also provide for unpredictable expenses, such as unexpected maintenance costs or a sale of the property and an ensuing increase in property taxes.