Owning a business that leases premises from a landlord involves signing a Texas commercial lease contract, stipulating many responsibilities of both parties to the agreement. Overlooking the details in the contract can result in liabilities that hurt the project and may even result in litigation down the road. When checking into a commercial lease for a pool service company, it is helpful to understand the obligations and rights under Texas law with this type of agreement. The following are general guidelines on keeping your investment sound.

Understanding the Basics of a Texas Lease Contract

A lease is a legally binding agreement (contract) between you, the lessee, and the landlord, who is the lessor. It details the commercial space use, payment of rent or leasing fees, which items are part of the agreement, duration of the lease, expenses and responsibilities relating to the maintenance of the property, rules for property use, remedies, storage of items on the premises, and termination of the lease. Commercial properties leased by pool service companies often involve amenities such as pools, outdoor patios, storage areas for equipment, and signage. These aspects of the property should be addressed in detail in the lease contract. It’s important to note that if any part of the Texas commercial lease contract is unclear, you can obtain clarification from your attorney to avoid misunderstandings later.

Clues to Verifying Your Lease

Any use of a property where rented space is involved falls under the category of lease contracts. Commercial leases in Texas may not fall under the same statutes as retail store or other common “buying” strategies under real estate agreements. Thus, the need for clarity is vital to your success. Signs that you may have a commercial lease on your hands include:

• Specific use of the property detailed.
• The property is rented from you or is part of the overall purchase costs of a larger property.
• There is no purchase consideration required.
• You receive rent on the property.
• The property is used for nonresidential purposes.

Things to Look For in Your Texas Commercial Lease Contract

Be clear regarding the overall designated use of the leased property. Some fund entities can sign lease contracts where the entity is owned by the shareholder or owner of the business. This can be a standard practice in some states, but not Texas. Make sure that the written document transferred is unambiguous and can be interpreted in only one way.

Important Lease Clauses

Commercial lease agreements are generally governed by the lease contract itself. Be sure to understand the following clauses or at least know what compensatory actions you may have in the event of a dispute between you and the landlord or lessor:

• Reformatting of the existing space.
• Construction of extended space.
• Landlord’s right to terminate the lease.
• Maintenance requirements, with regard to who is responsible for maintaining the leased space.
• Rental terms and obligations.
• Use of the space, such as lawn care by the pool or patio area.
• Exclusive use of the leased space – In some situations, if your business is the sole retailer selling a specific product, you may not want other retailers using the same product in the current leased property space.
• Security and safety requirements.
• Remedies, should either party fail to uphold the terms of the lease contract.
• Limitation of liability.
• Indemnification provisions.
• Information on assigning lease to another entity.
• Insurance requirements.
• General provisions of the lease.

Commercial real estate laws change on state levels, so be aware of your rights and responsibilities when leasing property, whether you are the business owner or lessor. Consulting with a knowledgeable attorney is recommended when you are entering into these types of agreements to ensure all aspects of the deal are in your best interest.

For more information on commercial leases, you can visit this Wikipedia page.