Lease Proposal Template

Premises —

[RENTAL PROPERTY ADDRESS]

[CITY, STATE ZIP]

Date — [LEASE PROPOSAL DATE]

Proposal Expiration Date — [EXPIRATION DATE]

Dear [TENANT PROSPECT] —

This Lease Proposal document outlines the proposal terms for lease of the premises described above to you, [TENANT NAME] (“Prospective Tenant”), by [LANDLORD NAME] (“Landlord”).  If you are interested in proceeding, the full Lease Agreement will be prepared and submitted to you for review and signature.

1. Term of lease — Commencing on [BEGIN DATE] and ending on [END DATE]

2. Renewal option — [RENEWAL OPTION]

Panda Tip:  This is where you would note either a month-to-month tenancy continuing after the initial term had passed, or perhaps automatically renewal for the same length of term if no 30 day advance notice was given, or could indicate that there are no renewal options at all.

3. Proposed usage — [PROPOSED USAGE]

Panda Tip:  Designate whether it is for office space, commercial use, retail, etc.  Both parties need to understand what the premises will be used for so they can ensure that it is appropriate to the zoning and capacities of the facility.

4. Rent — [MONTHLY RENT]

Panda Tip:  Don’t forget that if you have an ongoing renewal option for a lengthy lease, you need to decide whether to allow for increases in rent with renewals.

5. Security Deposit — [SECURITY DEPOSIT]

6. Inclusions — [INCLUDED ITEMS]

Panda Tip:  This is where you should note items included in the rent, like utilities, telephone, cable, internet access, and other expenses relating to ongoing operations at the premises during the lease period.  Anything obvious that is not included, should be listed in the exclusions paragraph below.

7. Exclusions — [EXCLUDED ITEMS]

Panda Tip:  These are items of costs that are explicitly excluded as being part of the rent, like utilities, telephone, cable, internet access, and other expenses relating to ongoing operations at the premises during the lease period.

8. Assignment or subletting — [ASSIGNMENT OPTION]

Panda Tip:  Most leases either do not allow the Tenant to re-lease the premises to someone else, or allow it only under certain terms.

9. Other items — [OTHER ITEMS]

Panda Tip:  This is the place to notate other terms that are likely to be important to the Tenant in deciding whether to proceed to enter into a formal lease agreement.

10.    Lease Agreement — A formal, written lease agreement would be executed between the Parties that would become the final agreement between them.

If you are interested in proceeding to finalize a formal, written Lease Agreement under the scope set out above, please contact [CONTACT NAME] at [CONTACT PHONE] OR [CONTACT EMAIL] at your earliest possible convenience.

This Lease Proposal does not constitute a contract, or an offer to contract, but rather an invitation to proceed with further actions by the Parties towards execution of a formal agreement between the Parties.

Panda Tip:  This paragraph is important because of basic contract law.  If this is an “offer,” the proposed tenant could just “accept” the terms above (such as by calling up and saying “yes, I agree” or mailing a letter doing the same) and a binding contract would be created.  The intent here is rather to move negotiations along, with a final, more detailed document being signed by the parties as the actual contract.

[LANDLORD NAME]

[ADDRESS]

[CITY, STATE ZIP]

[COUNTRY]

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