The value for properties, especially those for commercial use such as buildings or plots of land in the city’s business district, regularly increases over time. Most especially if those site have a great potential for business and commerce. Meaning that they are a great spot for business. It may be right in the middle of the shopping district or there’s just a good demand for products and services in the area. Now, the best thing to do if you have a property like the one I’ve just described is to take advantage of that demand and build a potentially high profit business. Because that’s just simply how business works, scope out for any demand and try to take advantage of the market. But you may not have all the resources you need to do so. Maybe the demand is just something entirely different from what you originally produce, or you may have some prior engagements you have to take care of yourself. In this case, the second best thing to do would be to lease your property to a prospective client or tenant. With this, they can establish any business or enterprise they want, and you will still rake in profits from the payments of the lease. A good tool to make sure that you and your client is on the same page regarding your lease and the whole provision of the agreement is a new lease rental proposal.
Like most proposal documents, this don’t actually propose anything to your prospect, but rather a sort of reply to when the prospective client ask for your terms and conditions regarding the lease. As a property owner yourself, it is imperative that you provide a well written proposal to your client to protect your rights as a property owner and just the overall welfare of the property itself. Aside from being a working contracts between you and your tenant, it also protects you when you and your client ever come across a legal issue. The document, its contents as a proposal, agreement, and contract, will give you a more favorable outcome in the court of law. The document makes sure that whatever your tenant may be doing with your commercial space, it is well within the parameters that both of you have discussed and agreed to. It just saves you a whole lot of money and trouble by keeping you away from total disaster. There have been some pretty baffling cases of landlords and property owners being cheated away from their own properties just because they lack the documents they need to defend themselves. That is why just before any business is accomplished, it is important that you can provide your client a well written lease proposal. Make sure that your document is proper and well drafted by first checking out these new lease proposal samples that we have listed down below. Once you’ve acquainted yourself enough with the document, feel free to use these samples as guides or even as templates for your own lease proposal.
3+ New Lease Proposal Samples
1. New Lease Proposal Sample
2. Printable New Lease Proposal
3. Standard New Lease Proposal
4. New Lease Proposal Format
What Is a New Lease Proposal?
A lease proposal is usually a document a landlord or property owner uses as a reply to a prospective client’s inquiries regarding the terms and conditions of a lease. The document outline the building or property that is being considered and the conditions the property owner requires of its tenants. It allows different entities, usually the clients, to get a lease proposal from multiple properties to see what terms and conditions fit them best. It gives them the chance to properly assess the property and the property’s requirements. For property owners, they can have a bit of freedom when writing the document because it just essentially talks about their own property. The document is also a very useful tool especially when property owners want to make sure that their clients are reliable and trustworthy enough to use the property. To not cause trouble and any sort of damages to the property itself. Unlike rental proposals, lease proposals are quite difficult to terminate due to the nature of the agreement. Rental proposals usually just have around 1-2 months in their agreements, while leases have at least a year for the duration of the contract.
How to Write a New Lease Proposal
A lease proposal has to include several specific provisions to make sure that the document does its larger purpose of protecting you and your property. It’s usually common for landlords to have their own attorneys and legal advisors draft the document to cover all of the legal aspects of the document. More provisions may be included, but that is entirely up to you and the nature of your property or the nature if the business that will take place in your property. Regardless of the document’s shape or form, you have to be able to cover all the the legal aspects of the lease.
- Title
Make sure to give your document the proper title of “Lease Proposal”. Then specify the property number or solicitation number provided on the property listing. Include the date so that you, the landlord, and the client knows which listing and when the listing took place. - Address
Describe the environment of your property. Include the name of the building, it’s complete physical address, city, state, and ZIP code. Provide specific descriptions of the building if you are unable to provide the exact specific address. - Details
Provide specific details of the space that is to be leased. Include a description of the floor plan, the total measurements of the area and the rate per square foot. These will provide details on how the rent is broken down to arrive to the rate of payment. Specify storage additional storage spaces or garages, but offer it in a separate section so that your clients can choose to rent the additional space or not. - Fees
Calculate the rental fee per month using the measurements that you’ve taken for the section above and break it down for your client. It would also be better to show and explain how you’ve arrived to your amount. - Additional information
Highlight the additional points of your property such as spare parking or storage spaces and the number of available parking space per person in the unit. Some states have different parking fees per property so you’d better include that information as well. Remember that you cannot rent out parking spaces if it is not explicitly a part of your own property. - Renewal options
Outline the differences of the lease proposal when it comes to the initial agreement and the renewal for the lease of the property. Specify if every renewal you will have an increase in rent of if you would like to change from a yearly payment period to a month-to-month agreement. - Signatures
Cap off the proposal with a space for the landlord and the client to sign. If you want the document to be legally binding, you can also have the document signed by your legal advisors or attorneys.
FAQs
How long is a lease good for?
Leases usually last for at least one year, and it is pretty normal for leases to last for far longer than that.
What’s the difference between a lease and a rent?
The main difference between the two is the period of time they cover. A rent or a rental agreement usually only lasts for a short term, usually around 30 days or a month. While leases are applied to longer contracts with at least 12 months in the agreement, and sometimes even more.
Is a lease proposal binding?
Both parties signing to a lease proposal results in a binding agreement, even if one of them do not necessarily agree on the terms of the lease, as long as they signed it, then they are already a part of the agreement.
Having your own property rented can have its own fair share of risks, most often compelling than others. We’ve already outlined the importance of a lease proposal in the article above. Now with the help of our tips and the templates that we have provided, you’ll be able to draft a well written new lease proposal.
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