Tenancy agreement template

Create and manage tenancy agreements more efficiently with this free template, enabling businesses to establish clear rental terms and conditions. 

With the rise of commercial spaces and a hybrid working world often requiring businesses to rent smaller premises than before, tenancy agreements have become a staple in the corporate world. 

But what are they, who should use one and how can you draft one? 

What is a Tenancy Agreement?

A Tenancy Agreement, or lease agreement, is a legal contract between two businesses where one business agrees to rent property owned by another business. This type of agreement is essential for businesses that require commercial spaces, warehouses or other facilities.

These agreements ensure that both parties understand their rights and responsibilities, such as rent, maintenance, and other essential terms. They are crucial for protecting the interests of both the landlord and the tenant, ensuring smooth operations and preventing potential disputes.

Types of Tenancy Agreements

Fixed-Term Lease: This is a lease agreement for a specific period, often ranging from a year to several years. It provides security for both parties as the terms are fixed and cannot be easily altered.

Month-to-Month Lease: This type of lease offers flexibility, allowing either party to terminate the agreement with proper notice, usually 30 days.

It's essential to understand the type of lease you're entering into and ensure it aligns with your business needs.

When should you use a Tenancy Agreement?

When you should use a tenancy agreement depends on your reason for hiring a space. Some of the most common reasons are: 

• Starting a new business. When launching a new venture, securing a physical location might be crucial. A tenancy agreement ensures you have the space you need.
• Expanding operations. Growing businesses might need additional spaces, warehouses, or facilities. A clear and concise tenancy agreement helps in such expansions.
• Relocating. If a business decides to move its operations, a new tenancy agreement will be required for the new location.
• Temporary projects. For short-term projects or pop-up events, businesses might need temporary spaces. A month-to-month lease can be ideal in such cases.

Key elements of a Tenancy Agreement

Tenancy agreements have a fairly traditional formula and should include the following: 

• Details of the parties. Clearly mention the names, addresses, and other relevant details of both the landlord and the tenant.
• Property description. A detailed description of the property being rented, including its location, size, and any specific features.
• Rent amount and payment terms. Clearly state the rent amount, due date, and any penalties for late payments.
• Duration of the lease. Specify whether it's a fixed-term or month-to-month lease and mention the start and end dates.
• Maintenance and repairs. Outline who is responsible for maintenance and repairs, ensuring clarity on responsibilities.
• Termination clauses. Detail the conditions under which the agreement can be terminated by either party.
• Dispute resolution. Specify how disputes, if any, will be resolved – through mediation, arbitration, or court proceedings.
• Signatures. Both parties should sign the agreement, making it legally binding.

Challenges of drafting Tenancy Agreements

Though they are a fairly common, there are some challenges that may arise when drafting a tenancy agreement. 

Firstly, staying updated with commercial leasing laws is crucial as they can change over time. It's important to make sure your agreement matches the latest rules.

It can also be difficult to meet the needs of both parties involved when creating such agreements, meaning there may be more negotiation involved than other contracts. 

Finally, commercial leases often include detailed terms about price increases, renewals, and other factors. It takes time and effort to understand and discuss these terms properly.

Automating Tenancy Agreements with Juro 

Modern businesses are looking to automate routine contracts like B2B tenancy agreements. Automation can save time, reduce errors, and streamline the entire process. Platforms like Juro offer automated templates, making it easier to draft, review, and sign tenancy agreements.

Benefits of automation

1. Standardization. Ensure all your tenancy agreements follow a standard format, reducing inconsistencies by uploading a unified template into Juro.
2. Efficiency. Speed up the drafting and signing process with native e-signature, helping businesses move faster.
3. Reduced errors. Automation reduces the chances of errors, ensuring all essential terms are included. Especially with features such as Juro’s legal AI Assistant making this process more 
4. Easy access: Store all your agreements in one place, making them easily accessible and searchable.

Ready to automate your tenancy agreement template with Juro?

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