Free Commercial Lease Agreement - Ireland

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Commercial Lease Agreement

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COMMERCIAL LEASE AGREEMENT

THIS LEASE (this "Lease") dated this ________ day of ________________, ________

BETWEEN:

______________________ of _________________________________
Telephone: ______________________
(the "Landlord")

OF THE FIRST PART


- AND -

______________________ of _________________________________
Telephone: ______________________
(the "Tenant")

OF THE SECOND PART

IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties to this Lease (the "Parties") agree as follows:

  1. Definitions
  2. When used in this Lease, the following expressions will have the meanings indicated:
    1. "Additional Rent" means all amounts payable by the Tenant under this Lease except Base Rent, whether or not specifically designated as Additional Rent elsewhere in this Lease;
    2. "Building" means all buildings, improvements, equipment, fixtures, property and facilities from time to time located at __________, as from time to time altered, expanded or reduced by the Landlord in its sole discretion;
    3. "Insured Risks" means fire, lightning, earthquake, explosion, aircraft (other than hostile aircraft) and other aerial devices or articles dropped from such aerial devices, riot, civil commotion, malicious damage, storm or tempest, bursting or overflowing of water tanks apparatus or pipes, flood, impact by road vehicles, terrorism (to the extent that insurance against such risks may ordinarily be arranged with an insurer of good repute at reasonable commercial rates) and such other risks or insurance as may from time to time be reasonably required by the Landlord;
    4. "Common Areas and Facilities" mean:
      1. those portions of the Building areas, buildings, improvements, facilities, utilities, equipment and installations in or forming part of the Building which from time to time are not designated or intended by the Landlord to be let to tenants of the Building including, without limitation, exterior weather walls, roofs, entrances and exits, parking areas, driveways, loading docks and area, storage, mechanical and electrical rooms, areas above and below leasable premises and not included within leasable premises, security and alarm equipment, grassed and landscaped areas, retaining walls and maintenance, cleaning and operating equipment serving the Building; and
      2. those lands, areas, buildings, improvements, facilities, utilities, equipment and installations which serve or are for the useful benefit of the Building, the tenants of the Building or the Landlord and those having business with them, whether or not located within, adjacent to or near the Building and which are designated from time to time by the Landlord as part of the Common Areas and Facilities;
    5. "Leasable Area" means with respect to any rentable premises, the area expressed in square metres of all floor space including floor space of mezzanines, if any, determined, calculated and certified by the Landlord and measured from the exterior face of all exterior walls, doors and windows, including walls, doors and windows separating the rentable premises from enclosed Common Areas and Facilities, if any, and from the centre line of all interior walls separating the rentable premises from adjoining rentable premises. There will be no deduction or exclusion for any space occupied by or used for columns, ducts or other structural elements;
    6. "Premises" means the office space at __________, registered with the land registry under folio number __________.
    7. "Rent" means the total of Base Rent and Additional Rent.
  3. Intent of Lease
  4. It is the intent of this Lease and agreed to by the Parties to this Lease that rent for this Lease will be on a gross rent basis meaning the Tenant will pay the Base Rent and any Additional Rent and the Landlord will be responsible for all other service charges related to the Premises and the operation of the Building save as specifically provided in this Lease to the contrary.
  5. Leased Premises
  6. The Landlord agrees to rent to the Tenant the office space located at __________, (the "Premises").
  7. The Premises will be used for only the following permitted use (the "Permitted Use"): ______________________________________________________________________
    ______________________________________________________________________

  8. Term
  9. The term of the Lease commences at 12:00 noon on 26 September 2022 and ends at 12:00 noon on 26 September 2022 (the "Term").
  10. Should the Tenant remain in possession of the Premises with the consent of the Landlord after the natural expiration of this Lease, a new tenancy from month to month will be created between the Landlord and the Tenant which will be subject to all the terms and conditions of this Lease but will be terminable upon either party giving one month's notice to the other party.
  11. Rent
  12. Subject to the provisions of this Lease, the Tenant will pay a base rent of €_________ per month, for the Premises (the "Base Rent"), without setoff, abatement or deduction. In addition to the Base Rent, the Tenant will pay for any fees or taxes arising from the Tenant's business.
  13. The Tenant will pay the Base Rent on or before the __________ of each and every month of the Term to the Landlord.
  14. No acceptance by the Landlord of any amount less than the full amount owed will be taken to operate as a waiver by the Landlord for the full amount or in any way to defeat or affect the rights and remedies of the Landlord to pursue the full amount.
  15. Use and Occupation
  16. The Tenant will open the whole of the Premises for business to the public fully fixtured, stocked and staffed on the date of commencement of the Term and throughout the Term, and will continuously occupy and utilise the entire Premises in the active conduct of its business in a reputable manner on such days and during such hours of business as may be determined from time to time by the Landlord.
  17. The Tenant covenants that the Tenant will carry on and conduct its business from time to time carried on upon the Premises in such manner as to comply with all statutes, bylaws, rules and regulations of any national, regional, local or other competent authority and will not do anything on or in the Premises in contravention of any of them.
  18. Quiet Enjoyment
  19. The Landlord covenants that on paying the Rent and performing the covenants contained in this Lease, the Tenant will peacefully and quietly have, hold, and enjoy the Premises for the Term.
  20. Distress
  21. If and whenever the Tenant is in default in payment of any money, whether hereby expressly reserved or deemed as Rent, or any part of the Rent, the Landlord may, without notice or any form of legal process, enter upon the Premises and seise, remove and sell the Tenant's goods, chattels and equipment from the Premises or seise, remove and sell any goods, chattels and equipment at any place to which the Tenant or any other person may have removed them, in the same manner as if they had remained and been distrained upon the Premises, all notwithstanding any rule of law or equity to the contrary, and the Tenant hereby waives and renounces the benefit of any present or future statute or law limiting or eliminating the Landlord's right of distress.
  22. Overholding
  23. If the Tenant continues to occupy the Premises without the written consent of the Landlord after the expiration or other termination of the Term, then, without any further written agreement, the Tenant will be a month-to-month tenant at a minimum monthly rental equal to twice the Base Rent and subject always to all of the other provisions of this Lease insofar as the same are applicable to a month-to-month tenancy and a tenancy from year to year will not be created by implication of law.
  24. Additional Rights on Reentry
  25. If the Landlord reenters the Premises or terminates this Lease, then:
    1. notwithstanding any such termination or the Term thereby becoming forfeited and void, the provisions of this Lease relating to the consequences of termination will survive;
    2. the Landlord may use such reasonable force as it may deem necessary for the purpose of gaining admittance to and retaking possession of the Premises and the Tenant hereby releases the Landlord from all actions, proceedings, claims and demands whatsoever for and in respect of any such forcible entry or any loss or damage in connection therewith or consequential thereupon;
    3. the Landlord may expel and remove, forcibly, if necessary, the Tenant, those claiming under the Tenant, and their effects, as allowed by law, without being taken or deemed to be guilty of any manner of trespass;
    4. in the event that the Landlord has removed the property of the Tenant, the Landlord may store such property in a public warehouse or at a place selected by the Landlord, at the expense of the Tenant. If the Landlord feels that it is not worth storing such property given its value and the cost to store it, then the Landlord may dispose of such property in its sole discretion and use such funds, if any, towards any indebtedness of the Tenant to the Landlord. The Landlord will not be responsible to the Tenant for the disposal of such property other than to provide any balance of the proceeds to the Tenant after paying any storage costs and any amounts owed by the Tenant to the Landlord;
    5. the Landlord may relet the Premises or any part of the Premises for a term or terms which may be less or greater than the balance of the Term remaining and may grant reasonable concessions in connection with such reletting including any alterations and improvements to the Premises;
    6. after reentry, the Landlord may procure the appointment of a receiver to take possession and collect rents and profits of the business of the Tenant, and, if necessary to collect the rents and profits the receiver may carry on the business of the Tenant and take possession of the personal property used in the business of the Tenant, including inventory, trade fixtures, and furnishings, and use them in the business without compensating the Tenant;
    7. after reentry, the Landlord may terminate the Lease on giving 5 days' written notice of termination to the Tenant. Without this notice, reentry of the Premises by the Landlord or its agents will not terminate this Lease;
    8. the Tenant will pay to the Landlord on demand:
      1. all Rent and other amounts payable under this Lease up to the time of reentry or termination, whichever is later;
      2. reasonable expenses as the Landlord incurs or has incurred in connection with the reentering, terminating, reletting, collecting sums due or payable by the Tenant, realising upon assets seised; including without limitation, brokerage, fees and expenses and legal fees and disbursements and the expenses of keeping the Premises in good order, repairing the same and preparing them for reletting; and
      3. as liquidated damages for the loss of rent and other income of the Landlord expected to be derived from this Lease during the period which would have constituted the unexpired portion of the Term had it not been terminated, at the option of the Landlord, either:
        1. an amount determined by reducing to present worth at an assumed interest rate of twelve percent (12%) per annum all Base Rent and estimated Additional Rent to become payable during the period which would have constituted the unexpired portion of the Term, such determination to be made by the Landlord, who may make reasonable estimates of when any such other amounts would have become payable and may make such other assumptions of the facts as may be reasonable in the circumstances; or
        2. an amount equal to the Base Rent and estimated Additional Rent for a period of six (6) months.
  26. Tenant Improvements
  27. The Tenant will obtain written permission from the Landlord before doing any of the following:
    1. painting, wallpapering, redecorating or in any way significantly altering the appearance of the Premises;
    2. removing or adding walls, or performing any structural alterations;
    3. changing the amount of heat or power normally used on the Premises as well as installing additional electrical wiring or heating units;
    4. subject to this Lease, placing or exposing or allowing to be placed or exposed anywhere inside or outside the Premises any placard, notice or sign for advertising or any other purpose;
    5. affixing to or erecting upon or near the Premises any radio or TV antenna or tower, or satellite dish; or
    6. installing or affixing upon or near the Premises any plant, equipment, machinery or apparatus without the Landlord's prior consent.
  28. Abandonment
  29. If at any time during the Term, the Tenant abandons the Premises or any part of the Premises, the Landlord may, at its option, enter the Premises by any means without being liable for any prosecution for such entering, and without becoming liable to the Tenant for damages or for any payment of any kind whatever, and may, at the Landlord's discretion, as agent for the Tenant, relet the Premises, or any part of the Premises, for the whole or any part of the then unexpired Term, and may receive and collect all rent payable by virtue of such reletting, and, at the Landlord's option, hold the Tenant liable for any difference between the Rent that would have been payable under this Lease during the balance of the unexpired Term, if this Lease had continued in force, and the net rent for such period realised by the Landlord by means of the reletting. If the Landlord's right of reentry is exercised following abandonment of the premises by the Tenant, then the Landlord may consider any personal property belonging to the Tenant and left on the Premises to also have been abandoned, in which case the Landlord may dispose of all such personal property in any manner the Landlord will deem proper and is relieved of all liability for doing so.
  30. Governing Law
  31. This Lease will be construed in accordance with and exclusively governed by the laws of Ireland.
  32. Severability
  33. If there is a conflict between any provision of this Lease and the applicable legislation (the "Act"), the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Lease.
  34. Bulk Sale
  35. No bulk sale of goods and assets of the Tenant may take place without first obtaining the written consent of the Landlord, which consent will not be unreasonably withheld so long as the Tenant and the Purchaser are able to provide the Landlord with assurances, in a form satisfactory to the Landlord, that the Tenant’s obligations in this Lease will continue to be performed and respected, in the manner satisfactory to the Landlord, after completion of the said bulk sale.
  36. Where the Premises has its own footpath, entrance, driveway or parking space which is for the exclusive use of the Tenant and its guests, the Tenant will keep the footpath, entrance, driveway or parking space clean, tidy and free of objectionable material including dirt, debris, snow and ice.
  37. Where the Premises has its own garden or grass area which is for the exclusive use of the Tenant and its guests, the Tenant will water, fertilise, weed, cut and otherwise maintain the garden or grass area in a reasonable condition including any trees or shrubs in or about the Premises.
  38. The Tenant will also perform the following maintenance in respect to the Premises: ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
  39. Care and Use of Premises
  40. The Tenant will promptly notify the Landlord of any damage, or of any situation that may significantly interfere with the normal use of the Premises.
  41. The Tenant will not make (or allow to be made) any noise or nuisance which, in the reasonable opinion of the Landlord, disturbs the comfort or convenience of other tenants.
  42. The Tenant will not engage in any illegal trade or activity on or about the Premises.
  43. The Landlord and Tenant will comply with standards of health, sanitation, fire, housing and safety as required by law.
  44. Surrender of Premises
  45. At the expiration of the lease term, the Tenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements excepted.
  46. Hazardous Materials
  47. The Tenant will not keep or have on the Premises any article or thing of a dangerous, flammable, or explosive character that might unreasonably increase the danger of fire on the Premises or that might be considered hazardous by any responsible insurance company.
  48. Rules and Regulations
  49. The Tenant will obey all rules and regulations posted by the Landlord regarding the use and care of the Building, parking lot and other common facilities that are provided for the use of the Tenant in and around the Building on the Premises.
  50. General Provisions
  51. Any waiver by the Landlord of any failure by the Tenant to perform or observe the provisions of this Lease will not operate as a waiver of the Landlord's rights under this Lease in respect of any subsequent defaults, breaches or nonperformance and will not defeat or affect in any way the Landlord's rights in respect of any subsequent default or breach.
  52. This Lease will extend to and be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors and assigns, as the case may be, of each party to this Lease. All covenants are to be construed as conditions of this Lease.
  53. All sums payable by the Tenant to the Landlord pursuant to any provision of this Lease will be deemed to be Additional Rent and will be recoverable by the Landlord as rental arrears.
  54. Where there is more than one Tenant executing this Lease, all Tenants are jointly and severally liable for each other's acts, omissions and liabilities pursuant to this Lease.
  55. Time is of the essence in this Lease.
  56. This Lease will constitute the entire agreement between the Landlord and the Tenant. Any prior understanding or representation of any kind preceding the date of this Lease will not be binding on either party to this Lease except to the extent incorporated in this Lease. Only express warranties of the Landlord set out in this Lease will be enforceable and no additional warranties may be implied.

IN WITNESS WHEREOF the Parties to this Lease have duly affixed their signatures under hand and seal, or by a duly authorised officer under seal executed as a deed, on this ________ day of ________________, ________

Present when the common seal of ______________________ was affixed hereto:




_______________________
______________________

Present when the common seal of ______________________ was affixed hereto:




_______________________
______________________

Last updated: July 27, 2022

What is a Commercial Lease Agreement?

A Commercial Lease Agreement outlines the rights and obligations of a landlord and their tenant when they are renting commercial property. Commercial property includes office buildings, industrial space, restaurants, retail shops, warehouses, and more. If you want to rent out residential property, use our Tenancy Agreement.

A Commercial Lease Agreement aims to establish lease terms, so each party is bound to them. A lease agreement protects tenants by documenting their right to use the rental property for business purposes. This document protects landlords because it records the tenant’s obligations.

A Commercial Lease Agreement is also known as a:

  • Business lease agreement
  • Business rental agreement
  • Business letting agreement
  • Commercial tenancy agreement

Why is it important to use Commercial Lease Agreements?

Whether you are a landlord or tenant, using a lease is essential when renting commercial space. Perhaps most importantly, Commercial Lease Agreements prove that both parties agreed to the lease terms and are bound to them. With a binding contract, each party can hold the other accountable for their obligations.

It is not uncommon for landlords and tenants to have disputes, such as disagreeing about who pays for repair costs. Commercial Lease Agreements clarify the obligations of both parties, so each person knows what is expected of them during the tenancy. Furthermore, a written agreement prompts the parties to review the various terms before agreeing to the arrangement, preventing future misunderstandings.

If a landlord and tenant end up in a legal dispute and one party files a legal claim against the other, a lease agreement may be the only written record an intervening court can reference. Although verbal agreements can be binding, written agreements are much more secure. Without a written contract, both parties cannot prove the tenancy's agreed-upon terms.

Types of commercial leases

Our template allows you to create a standard or comprehensive lease. A standard lease contains all the vital terms for creating a legally binding contract but does not give the option of revising the standard clauses.

A comprehensive lease is a highly detailed and customisable lease agreement that allows you to control the exact wording of the contract.

Standard and comprehensive leases can be fixed or periodic.

Fixed-term

A lease with a fixed term specifies the exact day the tenancy will end. In a fixed-term lease, the landlord cannot increase the rent or change any other lease terms unless they expressly reserve the right in the original lease terms.

In general, if the tenant remains past the specified lease end date, the landlord can either:

  • Accept rental payments and have the lease continue as a periodic tenancy with the same rules as the expired fixed-term lease
  • Create and sign a new lease
  • Start eviction proceedings against the tenant

Sometimes, if the tenant has occupied the property for three years or more in Ireland, the tenant will acquire a right to renew the lease for successive terms.

Periodic

A periodic lease renews automatically every month or year until the tenant or landlord terminates it. A periodic lease is also known as a month-to-month or year-to-year lease.

When periodic leases are month-to-month, they can offer greater flexibility to both the tenant and the landlord to break the lease, evict the tenant, change the terms, and raise the rent. A landlord can generally increase rent and make changes to the terms if they provide the tenant with proper notice.

What is included in a Commercial Lease Agreement?

Generally, a Commercial Lease Agreement should include the following information:

  • The personal information of the landlord and tenant, such as personal and business names, addresses, and contact information
  • The guarantor’s information, if applicable
  • The property’s details, such as the address and folio number of the commercial rental space
  • The permitted use of the rental property and any restrictions placed upon the landlord, such as not leasing to direct competitors in the same building
  • The lease terms, such as the lease type, length, and start and end dates
  • The rent details, including the amount, payment frequency, and whether the tenant pays service charges
  • The responsibility for utilities, insurance payments, and maintenance, such as who is obligated to pay for which expenses

A Commercial Lease Agreement should also specify the following:

  • Whether or not the tenant can assign or sublease the property
  • Whether the tenant will pay gross rent or gross rent plus additional charges
  • Whether there will be a rent review process
  • Whether the landlord will charge a security deposit
  • Whether the landlord has to make improvements to the property or whether the tenant can renovate or make improvements to the property

Do tenants have to register Commercial Leases?

Yes. According to the Property Services (Regulations) Act 2011, a tenant must register their commercial lease with the Property Services Regulatory Authority (PSRA). Under sections 87 and 88 of the above Act, tenants have to provide the following information when registering:

  • Address and description of the commercial property
  • Date of lease
  • Term
  • Rent payable in respect of the property
  • Any other details provided under section 88
  • Any other details as may be described by regulations

What happens if one party breaks the terms of the Commercial Lease Agreement?

If either a landlord or their commercial tenant breaks the terms of their Commercial Lease Agreement, there can be serious consequences. It is known as a breach of contract when either party does not comply with the lease terms.

Commercial tenants breaking their lease terms

A commercial tenant may break their lease terms in the following ways:

  • Not paying their rent: Failing to pay the rent is one of the most common breaches committed by tenants.
  • Moving out before the lease ends: A commercial tenant breaches their lease if they move out before the term ends. Generally, if a tenant wants to end the lease earlier than the term duration, they must obtain written consent from the landlord.
  • Not fulfilling other lease obligations: A tenant must comply with their additional obligations, such as only using the commercial property for the purpose set out in the lease.
  • Does something prohibited by lease or the law: A tenant can also be considered in breach of a lease if they do something prohibited by the lease or the law.

When a tenant breaches their lease terms, the best place for a landlord to start is sending them a warning. It is easiest when the tenant can remedy the issue, and the landlord does not have to take further action.

However, tenants do not always cooperate, and landlords may have to seek different solutions. Depending on the severity of the breach, a landlord can terminate the lease, sue the tenant, or take other legal action.

Can you change a Commercial Lease Agreement?

Yes, you can change a Commercial Lease Agreement with a Lease Addendum (also known as a Lease Amendment). An addendum allows a landlord and tenant to keep the existing lease active while adding, removing, or modifying one or more clauses within the Commercial Lease Agreement. It's a convenient alternative to creating a whole new lease agreement when making minor changes to a lease.

Irish law requires that the landlord and tenant agree to the amendments and sign the document for it to be valid. Also, the amended agreement must still be valid under the Landlord and Tenant Law Amendment Act, Ireland 1860.

Related documents

  • Commercial Lease Notices: Provide a tenant with a Notice of Forfeiture, a Warning or Notice to Remedy Breach, or a Notice to Quit.
  • Lease Addendum: Make changes to an existing lease while keeping the original lease in effect.
  • Tenancy Agreement: Establish the terms of a residential tenancy between a landlord and tenant by outlining each party's rights and responsibilities.
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