The South Dakota commercial lease agreement is a contract that exists between the owner or landlord of commercial property and the business that will occupy the space. These types of leases are used for office, retail, and industrial spaces and outline the responsibilities of each party.
South Dakota Commercial Landlord/ Tenant Law
- A commercial lease will need to discuss who pays what expenses for the property. There are many different types of contracts that can be signed for this type of property. A triple net lease will give the renter the responsibility of paying for the rent, the maintenance fees, the taxes, the insurance, and the utilities. A gross lease will only require the tenant to pay the rent for the rental unit.
- A percentage-based lease is an option that will provide a lower rent to the tenant, but when they are doing well, they will need to give the landlord a percentage of the profits that they make. This can create an excellent opportunity for a small business that is just starting up.
- The landlord must disclose that lead-based paint could be a hazard in the unit if the building was constructed before 1978. This can be a hazard that is dangerous to pregnant women, young children, and others. An informative pamphlet is available on the federal level that will help inform the tenant of the risks so that they can consider whether the rental is right for their needs.
- Any building that has been known to manufacture methamphetamine must be disclosed to the tenants who are planning on renting the property. This is a potent chemical substance that could linger after a tenant vacates the property.