As a business owner you might own your business, but if you’re leasing a commercial space in Calgary, you don’t own the building. A commercial lease is quite a bit different from a residential lease in that the laws which govern them are different. Residential leases in Alberta are highly regulated and subject to enforcement.
However, if you have a commercial lease, you will find that the regulations which affect a commercial lease are a lot less stringent. With a commercial lease, what spells out the legal rights of a tenant in a commercial lease essentially depends on what is laid out in the contract itself.
Your legal rights as a commercial tenant are largely tied to the agreed upon terms of the commercial lease. As a commercial lease can be vital to the success of your business, you should take care before you sign on the dotted line to ensure that you rights as a commercial tenant are protected by the terms of the contract.
Each lease tends to be somewhat unique depending on the landlord and the nature of the business and locale. However, there are some common elements which you will find in every commercial contractual arrangement.
Most contracts consist of the following components which set the majority of your legal rights and responsibilities as a commercial tenant in Calgary.
Terms and Premise Definition
This clearly describes the space which you will be renting and defines the time period of the lease.
Your Monetary Responsibilities Under the Lease
Describes your financial responsibilities as a tenant and includes some or all of the following such as;
• The cost of the monthly rent.
• Your share of the operating expenses for the building.
• Your share or percentage of the municipal taxes.
• Your portion and responsibility for the costs of utilities.
Your Physical Responsibilities under the Commercial Lease
This portion must be dealt with carefully as it deals with your responsibilities regarding your commercial space and what you allowed to do or not do. This section of the contract also describes what maintenance you will be responsible for and what the building will cover. It also describes what alterations you will be allowed to make so this must section must be examined with a critical eye.
What Insurance Must Be Carried
This describes what aspects of the building the owner will be required so you must have this section looked over closely by your insurance agent to ensure you have suitable coverage for to cover all aspects of your business and for liability.
Rights for Subletting
Explains what you can and cannot do if you are considering subletting all or a portion of your space to a third party.
Non-Disturbance and Subordination Rights
This clause is also a very crucial one which must be examined critically as it covers what happens when a building owner runs into financial difficulties or proceeds to sell the premises.
Remedies for Default
This is also another vital section which spells out the various remedies which are available should you, as a commercial tenant, default on the terms of the lease.
Additional or Special Rights
As many contractual arrangements such as leases are negotiable or since each business is unique and may require special provisions, this section allows you and the owner to customize the lease to make it more suitable for your use, or to provide you with special inducements to enter into the lease.
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