Additionally, some restaurant operators find that running a restaurant is too much work or want to pursue other recreation or career options. As a result, some people who lease restaurant space want to have someone take over the lease.
Blaine Strickland - Updated June 28, A Letter of Intent is a summary of the terms acceptable to a tenant seeking to lease a space. It is usually prepared by the tenant after he investigates several options in the marketplace and has made the decision to focus on a single space.
The LOI signals to the landlord that the tenant wants to move toward formal agreement. When signed by both parties, the landlord typically asks his attorney to convert the LOI into a comprehensive, binding lease document which effectively replaces the LOI.
The rent should be raised at the end of the lease period. This should be spelled out in the verbiage of the lease. When beginning a rent increase letter, remind the tenant of the evaluation period and that they are within this time frame. Next, it is important to explain why the need for a rental increases. The first phase of negotiating a commercial lease usually begins with the Letter of Intent (“LOI”). It is common for the parties involved in a commercial lease to come to a preliminary “meeting of the minds” when contemplating a commercial leasing agreement. Example 2: Letter for office space. Company Name or Letterhead Address City, State Zip. Date. Addressee Address City, State Zip. Dear Mr. Carmello: We are inquiring about the “For Lease” sign outside of a small office building on the corner of 43rd and Bluebonnet.
For example, the landlord may have given the prospective tenant a proposal for the space, and supplied floor plans, pictures and a sample lease document. The tenant may have gathered information about the building as well from a variety of sources, including brokers, online data sources and personal inspection.
The more effort the tenant puts into creating an LOI that accurately reflects the details of the space and the business terms, the more quickly a mutual agreement will be reached. Also, a more accurate LOI usually translates to less time spent correcting errors and misunderstandings when the final lease is being prepared, which is almost always conducted by hourly paid attorneys.
Typical issues that require clarification in the LOI include the premises the space being leased, which may include internal and external areas like sidewalks or loading docksbase or contract rent, escalations in rent over the term of the proposed lease, responsibility for operating expenses e.
Many tenants have specialized concerns like signage, hours of operation, security and restricted access. All of these issues should be identified and sufficiently explained by the tenant in the LOI. Many templates are available for a tenant to use in starting the preparation of the letter, including those a broker may be able to offer.
The landlord can also be a resource in this step, too, by offering a boilerplate version of the lease. Knowing the lease will eventually contain all of the agreed points, the tenant can use the table of contents of the lease as a starting point for the LOI.
Some experienced tenants, like a national chain restaurant, will have a very detailed document they have honed over years of use. Occasionally, the LOI will refer to a detailed exhibit that appears at the end of the letter; a floor plan or a year-by-year rental schedule.
Step Five - Creating a Conclusion Conclude with a short paragraph that explains the terms expressed reflect intent but are not binding on the parties. The closing paragraph may also express a time limit for an agreement requiring the landlord to make some form of response by a certain date.
The response might take the form of a signed copy of the letter, or even a formal lease document that contains the expressed terms.
Finally, the letter of intent is signed by an authorized representative of the tenant who is identified by name and title.
Blaine Strickland has worked in real estate for more than 30 years. He serves as an adjunct professor of business at the University of Florida and the University of North Carolina. Strickland earned a Master of Arts in real estate and urban economics from the University of Florida.
He also holds designation as a certified commercial investment member CCIM. Cite this Article A tool to create a citation to reference this article Cite this Article.5. Summarize the current lease terms, such as lease type and length, renewal options and current rent. Alternately, attach a copy of the lease to the proposal as an appendix and state that you.
So here is the sample of the letter of intent to rent a commercial space: Ms Laureen Uy Zone Administrator Twin Dragons Supermall. Dear Ms. Uy, This is an official letter from NC Foods to inform you that we are very interested in leasing a . To Commercial Landlord Inquiring About Rental Premises Opportunities [Name, Company Name & Address here] [Date] Dear [name], I am the [your position] of [Company name].
How to write a commercial lease termination letter to a landlord if your business is closing If you business is closing, you may want to include the date your company will cease operations.
Otherwise, the information remains the same. Sample Letter of Rent Increase. My tenant’s lease is about to expire but there is a clause saying they could renew for another year for the same terms.
could you still send them a letter of intent to raise the rent?
Landlord Education says. March 17, at pm. Thanks Angelito, If you’re already into the lease, you’re locked. Apr 20, · Here is a sample form of such a letter of intent for an office lease that you can tailor to your particular situation.
See also additional provisions at the Forms & Agreements Center at.