Form TAR-2101 Commercial Lease - Texas Association of Realtors - Texas

Form TAR-2101 Instructions

It is in everyone's best interest to draft a proper lease agreement and establish a long-term rapport between the landlord and the tenant. Whether you plan to enter into an industrial or retail lease, rent one room, an entire office, or building, follow these steps to complete TAR Commercial Lease:

1. Identify the parties to the lease.
2. Describe the leased property and all its improvements.
3. Indicate the term of the lease - you need to enter the commencement and expiration dates.
4. State the amount of monthly rent and supplemental expenses. Agree on the payment method before the tenant uses the premises.
5. Add a security deposit as an addition to the advance rent and decide who pays for the utilities.
6. Include an insurance clause to guarantee payment for any damage to the property.
7. Decide when the tenant may use the property and outline for which purpose these premises are rented. The tenant must promise to comply with all laws and regulations and do not conduct any illegal activities on the rented premises.
8. Forbid the use of signs and decoration outside the premises without the landlord's consent and write down when the landlord can access the property.
9. Confirm that the premises are leased in its present condition and they must be surrendered in the same condition except for wear and tear.
10. Determine which party is responsible for general maintenance and repairs and state who and when can make alterations to the premises.
11. Include common lease clauses - indemnity, default, subordination, casualty loss, etc. You may add other provisions using free space in the form.
12. Identify brokers to the lease and state when they will receive their fees.
13. Certify you have read and understood the contract, date, and sign the document. However, once the papers are prepared, you are not bound to the terms forever - a commercial lease offers flexibility and negotiability, and parties can discuss the clauses of the agreement, especially if their relationship proves to be fruitful.

You can also sign addendums to outline the reimbursement of expenses, future extension, parking, right of first refusal, etc.