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The Alabama commercial lease agreement is a form used by a Landlord and Tenant to establish terms and conditions for the business-related use of a property. This commercial lease agreement form is legally binding once both parties sign.
By Type
When Does a Commercial Lease Agreement Become Legally Binding?
The Commercial Lease Agreement becomes legally binding when both parties sign the contract and the buyer gets the notice that the seller has accepted the deal. The buyer can get the notice in-person, by phone, and/or email.
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Rental Laws ⚖️
1. How to Lease Commercial Rental Property?
2 Options:
2. How to Process Rental Inquiries?
Property owners will know who is seriously interested in renting the Commercial Rental Property by potential Tenants requesting to see the property in person (property showing).
3. How to Screen Tenants?
There are five ways Landlords can screen potential Tenants to see if they are a good fit for the Commercial Rental Property for Lease:
- Commercial Lease Application
- Copy of Drivers License
- EIN (business)
- Previous two years of business tax returns (IRS Form 8879-S or IRS Form 1120S)
- Previous two years of personal income tax returns (IRS Form 1040).
Screening Services:
Individuals – MySmartMove (TansUnion)
Businesses – Dun & Bradstreet
Definitions
Commercial Property – Buildings and Land used for profit generation, including office buildings, medical centers, hotels, malls, retail stores, multifamily housing buildings, farmland, warehouses, and garages.
Commercial Lease/Tenancy – Nonresidential tenancy for property by for-profit entities.
Frequently Asked Questions
What is the penalty for breaking a Commercial Lease Agreement?
Commercial Leases do not have early termination rights, so Landlords usually require 3 to 6 months of pre-paid rent plus unamortized costs.
What are outgoings in Commercial Leases?
Operational and maintenance costs.
How much is a Commercial Lease Bond?
2-3% of the policy coverage amount annually.
How binding is a lease agreement in Alabama?
The agreement becomes legally binding once the Landlord and Tenant have signed the form.
How to evict someone without a lease agreement in Alabama?
The Landlord must notify the Tenant in writing to vacate the property after seven days of no rent payments in a rental without a lease (tenancy-at-will).
Do Commercial Tenants have the same rights and protections as Residential Tenants?
Unlike Residential Tenants, Commercial Tenants are bound to the statutory rights and protections outlined in the Lease Agreement.