The Arkansas commercial lease agreement establishes the relationship between a landlord and tenant or business. This contract outlines the responsibilities, terms, and conditions associated with renting office space, retail stores, or other commercial spaces. This type of lease can only be used by a business or commercial entity.
Arkansas Commercial Landlord/ Tenant Law
- In the state of Arkansas, a commercial lease runs longer than a fixed-term commercial lease in most cases due to the fact that commercial lessees desire stability. On average, a lease of this type runs from one to three years, but there are many situations where they may extend up to a decade.
- Three of the most typical leases include gross leases, triple-net leases, and modified gross leases. Each of these varies what the tenant and his or her landlord will be responsible for. For example, a gross lease will see the landlord covering insurance, taxes, and maintenance fees. On the other hand, a triple-net agreement has the tenant paying the landlord these monthly charges. Modified leases are a sort of hybrid lease that adjusts what the tenant and landlord pay based on the needs of either party.
- The terms of the lease will entail whether the property can be modified for renovation or signage, and a lease like this can also establish pet policy and rules of conduct for customers and any employees of the tenant. In most cases, there is also a hazardous or illegal materials section that dictates what can be stored on-premise.
- For businesses that are just starting, a percentage lease is an option where the lessee will pay a percentage of the business’s profits to the landlord in exchange for a lower rent. This can be great for organizations that need to establish clientele.
- Commercial leases must also provide certain disclosures before signing can occur. In the state of Arkansas, the landlord must tell a tenant if the property has lead-based paint. This is a federal law, and this comes into effect for any property that was built before 1978.
- Like other types of lease, a commercial lease must have the consent of the parties. To ensure this, each party must sign, print, and date the document. Also, many prefer to get the document notarized as well.