Minnesota commercial lease agreement

Minnesota commercial lease agreement

Crucial Elements Of a Minnesota Commercial Lease Agreement

1. The Parties

This is the first part of the contract and it contains the names, mailing addresses, and roles of those involved in the contract as well as the date the agreement is made with the contract. The landlord’s name is put down as the lessor's name and the tenant’s as the lessee's name.

2. The Premises

This comes after the parties and is a description of the commercial property to be leased to the lessee. This description must contain:

• The legal address of the property according to the local authorities. 

• The size of the property in square feet.

• The type of space to be leased to the lessee usually is retail space, industrial space, or office space.

• In addition to the address, size, and type of space the lessor may also include in this part of the contract a short written description of the property.

3. Use of the Leased Property

Here the lessor indicates the purposes for which the lessee may use the leased property. In most cases, one of two options is chosen by the lessor and indicated in the contract, these two options are:

• The lessee is allowed to use the leased property for any purpose they wish as long as it is legal under the law.

• The lessee is only allowed to use the leased space for a specific purpose, one which shall be agreed on by the lessor and lessee before the signing of the contract and also indicated in the contract.

4. The Terms of the Lease

This is just a way of saying the duration of the lease, this part of the document contains the lease start date, lease end date, and the length of time for which the lease is expected to last in years. Usually, a commercial lease agreement will last for a few years and will begin at midnight of the lease start date and expire at midnight of the lease end date.

5. The Security Deposit

A security deposit is a sum of money paid by the lessee to the lessor which is held in trust and can be used by the lessor to pay for any damages to the leased property by the lessee.

 This section of the document firstly indicates if the lessee will be required to pay a security deposit, and if they will it goes further to state the amount required by the lessor as a security deposit and that according to state law the security deposit may not be used by the lessor to pay any outstanding rent.

6. The Rent

This part of the contract indicates the amount in U.S dollars the lessee is required to pay the lessor every month as rent as well as the due date of the rent. Ina standard Minnesota commercial lease agreement the full month’s rent also applies to any pro-rata period; that is any period for which the lessee occupies the leased property for less than a month.

Some lessors may require the lessee to pay, in addition to the base monthly rent, a percentage, a percentage rent as the name implies is a fixed percentage of the lessee’s profit from the business run in the leased property to be paid to the lessor. Not all lessors may require a percentage rent while those who do indicate such in is section of the document as well as the percentage and the such should be paid.

7. The Late Fee

This is a fine paid by the lessee for not paying the rent on or before the due date, according to Minnesota state laws the late fee cannot be more than 8% of the overdue rent and the lease contract must specify when a late fee will be imposed.

The late fee may be set at either a specific amount per day that the rent is late or interest at a specified rate per annum for every day the rent is late.

Drafting a Minnesota Commercial Lease Agreement

1. Download a free standard template of the contract from the links below or you can use our document creator to create one tailored for you.

Fill in the required information crosscheck for errors and sign the contract.