Security Deposits

Your landlord may ask for a security deposit to assure that cash will be available if you fail to pay the rent or don't make other payments required under the lease. Unlike residential landlords, who in many states may not ask for more than two months' rent as a deposit, commercial landlords may demand whatever amount they think they need as a cushion to cover rent and other tenant financial obligations.

Or, instead of a security deposit, your landlord may ask for a "Letter of Credit" from your bank, in which the bank puts aside an agreed-upon amount of your funds for use by the landlord should you not carry-out your financial obligations.

Improvements and Alterations

If your new space will have to be customized to fit your needs, a big chunk of your lease should address this issue. You and the landlord will have to reach an agreement about who does the design, who does the work, when it gets done, and who pays for it. And if you're going to occupy space in a building not yet completed, you'll want to be sure that you pay for as little of the finish-up work as possible.

Maintenance, Utilities, and Code Compliance

The landlord's lease will undoubtedly contain a Maintenance clause that concerns your duties to care for your own rented space (or for the entire building, if you are the sole tenant). If you're a tenant in a multi-tenant building, you and the landlord will also have to settle on how the utilities will be billed and paid for, so you'll often see a Utilities clause near the Maintenance clause in the lease. Finally, the landlord may expect you to keep the building "up to code" -- whatever that means (it often isn't clear), in a lease clause sometimes titled "Compliance" or "Compliance with Laws."

Parking, Signs, Landlord's Entry, and Security

You're likely to find several clauses in the lease that concern practical understandings you have with your landlord, about such things as parking and business signs. As you negotiate these clauses, you and the landlord will be trying to smoothly integrate your needs to run your businesses wisely. Although these clauses may not pack the punch of a Rent or Maintenance clause, they can be very important to a successful and convenient tenancy.

Insurance Clauses

Several kinds of insurance are available to cover the risks of leasing commercial space, including property and liability insurance, rental interruption insurance (this covers you if your business is unexpectedly interrupted, as would happen after a natural disaster), and leasehold insurance (this coverage protects you if your lease is canceled due to circumstances beyond your control and you have to rent elsewhere at a higher rent). You'll need to evaluate each type of insurance coverage in the context of your lease and your landlord's requirements, your business needs, and the property -- and negotiate accordingly. An insurance broker can help too, especially when it comes to choosing adequate levels of coverage.