The North Carolina commercial lease agreement is a contract used specifically for renting commercial spaces to businesses and other commercial entities. This document establishes the terms and conditions associated with renting office, retail, or industrial space, as well as outlining the relationship between the landlord and tenant.
North Carolina Commercial Landlord/Tenant Laws
- A commercial lease has a tendency to have a much longer term in every state due to the fact that businesses tend to try to be in a single location.
- During a tenancy, commercial businesses may require renovation, additional signage, and expansion. For this reason, a commercial lease will need to have all-inclusive rules on this.
- These leases serve as private contract between the two parties and should account for any problems that might crop up over the five to 10 years of the lease’s duration.
- A commercial lease’s parties can default if they fail to have the business open during business hours, conduct illegal activities on the premises, engage in poor property upkeep, dispose of waste improperly, or if the business goes bankrupt.
- There are multiple potential lease structures to consider. For example, when a business is looking just to pay rent, the business can enter into a gross lease. If a lease wants more control of the property, which can include responsibilities like property tax and insurance, then a triple-net lease is the way to go. For those businesses just starting out, a percentage lease can be selected, which yields part of the profits of the business as payments to the landlord.
- The lease should be renewed properly, and any changes to the terms will have to be consented to by both parties.
- Both state and federal organizations require certain disclosures for commercial businesses looking to rent. The most well-known of these is the disclosure of the presence of lead-based paint, which pertains to buildings built before 1978.
- Landlords are not allowed to turn off utilities, remove doors, or otherwise inhibit the processes of business unless when eliciting repairs and upgrades.
- The document will have to not only be signed by both parties, but both parties will also need to print their names as well as date the document. The document should also be notarized.