Leased premises: Overview, definition, and example
What are leased premises?
Leased premises refer to the specific property or space that a landlord rents out to a tenant under a lease agreement. This can include residential properties, office spaces, retail storefronts, warehouses, or other commercial properties. The lease agreement typically outlines the rights and responsibilities of both the landlord and the tenant regarding the use and maintenance of the premises.
For example, a small business may lease a 2,000-square-foot office space in a commercial building for a term of five years, agreeing to pay monthly rent and comply with building regulations.
Why are leased premises important?
Leased premises are important because they define the physical space and legal boundaries of a tenant’s rental rights. A well-defined lease agreement ensures clarity on rent payments, permitted uses, maintenance responsibilities, and lease duration, reducing the risk of disputes between landlords and tenants.
For businesses, securing the right leased premises is critical for operations, customer accessibility, and long-term financial planning. Whether leasing an office, retail space, or industrial property, businesses must evaluate lease terms, renewal options, and potential restrictions before committing.
Understanding leased premises through an example
Imagine a restaurant owner looking to open a new location. They sign a five-year lease for a leased premises in a shopping center, agreeing to pay $5,000 per month in rent. The lease includes clauses specifying that the tenant is responsible for utility costs and minor interior repairs, while the landlord is responsible for structural maintenance.
In another scenario, a tech startup leases an open-plan office space in a shared coworking building. The lease agreement defines the leased premises as a dedicated 1,500-square-foot section of the office, while shared areas such as the lobby and conference rooms remain accessible to all tenants.
Example of a leased premises clause
Here's an example of how a leased premises clause may look like in a contract:
"The Landlord agrees to lease to the Tenant the premises located at [Address], consisting of approximately [X] square feet. The Tenant shall use the leased premises solely for [intended use] and comply with all applicable laws and lease terms governing its operation within the space."
Conclusion
Leased premises define the specific property a tenant rents under a lease agreement, ensuring clear legal and operational guidelines for both landlords and tenants. By carefully reviewing lease terms, businesses can secure suitable commercial spaces, minimize risks, and maintain long-term stability in their operations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.