The Wisconsin commercial lease agreement is a binding contract between a business entity and the owner or landlord of commercial space. This allows the business to operate out of an industrial, office, or retail space and defines the responsibilities of each party involved in the agreement.
Wisconsin Commercial Landlord/ Tenant Law
- A well-drafted commercial lease should include provisions for the landlord when the tenant breaks the terms of the lease. If agreed upon, the tenant can simply surrender the property without having to pay for the past due rent, which can be beneficial for both parties.
- When a commercial lease is being discussed, the two parties will need to set down and determine who will be responsible for paying the utilities, the insurance, and the other expenses of the unit. This can be negotiated based on the type of lease that is agreed upon, so consider which option is best for both parties.
- Many commercial leases are designed to have a term that will last for 10 years or more, so if a tenant wants a longer-term, you can often negotiate.
- If a building was constructed before 1978, the landlord will need to give the tenant information about the possibility of lead-based paint being on the premises. This can be hazardous to specific individuals, so they will not want to have a business in a location where it could cost them more money in the future because of legal fees.
- When a tenant is just starting with their business, a percentage-based lease could be a great option to consider. It will allow the tenant to pay a lower base rent. When they make a profit, they will need to give the landlord a percentage on top of the rent that is owed.