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This is a real estate question. My boss purchased a property

 
IrwinLaw's Avatar
  • Answered by:IrwinLaw
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Customer Question

This is a real estate question. My boss purchased a property and is using it for a property management business ( owns property and property management company) he is wanting me to prepare a lease agreement between him and his property management company that he owns. Can he do that? if so here is a break down of how he wants the lease drawn up for him:

1. 10 year lease that began 4 years ago

2. $35,000 monthly

3. 3% increase after first 5 years

4. 2 - 5 year options with a 3% rent increase for each

5. landlord only pays property taxes and insurance

Please tell me how to do this lease

 

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Country relating to Question: United States
State (if USA): California

Already Tried:
just answer

Submitted: 321 days and 9 hours ago.
Category: Legal
Value: $28
Status: CLOSED

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Expert:  IrwinLaw replied321 days and 8 hours ago.

There are numerous commercial lease forms on line. Some free and some for a fee, such as Rocket Lawyer. Here is a basic form of commercial lease published by the CA Association of Realtors.

http://www.properties-sah.com/docs/Commercial_Lease_Agreement.pdf

Just fill in the blanks and modify the terms to what you need.

I have answered your question. Please click on a 3,4,or 5 rating so that I will be compensated. If you are not satisfied with this answer, please send me a Reply with what you feel is wrong with the answer and what additional information you are seeking.
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Expert TypeAttorney
Category: Legal
Pos. Feedback: 92.0 %
Accepts: 1396
Answered: 8/1/2012

Experience: Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.

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Customer replied321 days and 7 hours ago.

dear expert, I need for you to show me in detail how to fill in this lease with information I gave you in the question, not just the commercial lease. please re-read the question.

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Expert:  IrwinLaw replied321 days and 7 hours ago.

Dear Tug Wug: Doing that would constitute practicing law in your state, which our policy prohibits.

Customer replied321 days and 7 hours ago.

Please Opt out of this question. Thanks

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Expert:  kattorney replied320 days and 16 hours ago.

Hi, as IrwinLaw said, we are not allowed to practice law by filling out the lease for you, but I can give you this general information:

1 - Date the lease as of 4 years ago (for example, this lease is effective as of July 1, 2008) and put the term end as June 30, 2018 ( using the above example as the start date).

2 and 3- Sticking with the above date example, you should state Monthly rental amount shall be $35,000 through July 1, 2013. Beginning August 1, 2013 rental amount shall increase to $36,050 per month until the end of the term.

4 -Example of language you could use: At the end of the term, Tenant shall have 2 options to renew this Lease for an additional 5 years. The monthly rental for the first renewal option term, if exercised, shall be $37,131.50. The monthly rental for the second renewal option term, if exercised, shall be $38,245.50.

5 - in the section about maintenance, write that tenant shall be responsible for ALL maintenance and repairs on the property. Under landlord obligations write that landlord shall pay taxes and insurance. under tenant obligations write that tenant shall get its own insurance on its property located at the leased space.

I hope this is helpful. Let me know if you have other questions.

 
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