A small business lease refers to a lease agreement where a small business entity leases an asset from another in order to use it for business purposes. By small business we usually mean any privately-owned company that is independently operated where the maximum number of employees usually ranges between 500 and 1,000 with a relatively low volume of sales. These companies do not have a lot of capital and often need to lease certain aspects of their business operations. A small business lease, like any other lease document, must clearly mention the names of the two parties, the rent and security deposit amount and the duration of the lease.
Sample Small Business Lease:
Name of lessor: William Jones
Address: 992 Crestview Lane, Austin
Name of lessee: Colt Industries
Address: 3022 Leafy Range, Austin
Leased property: 993 Crestview Lane, Austin
This small business lease agreement has been entered on March 22, 2012 by the lessor and lessee for a period of 15 months during which the lessee shall have the right to use the property mentioned above for business purposes alone.
Terms and Conditions:
- The lessee shall pay the lessee a monthly rent of $2,000 for the property to be used as an office. A fine of $25 will be charged if the rent is not paid within the first 3 days of every month
- A security deposit of $4,000 must be paid by the lessee, which will be returned to him at the end of the contract
- Both parties must give 30 days’ advanced notice to terminate the contract
Signature (Lessor) Date
Signature (Lessee) Date