Historic building leases are agreements that property owners and tenants enter into, so that a certain set of conditions can be fulfilled. Both the landlord and the tenant sign these agreements to ensure that they abide by them throughout the duration of their lease agreement. There are five main reasons why historic building leases exist and have been part of business law for many years.

1) Landlord wants to make some money

The owner of a historic building has a few things to consider when leasing it. They have to pay property taxes, insurance, utility bills and more. The cost of all these expenses is usually paid through rent, so it’s important for landlords to get as much income from each unit as possible. To maximize their profits, some may charge higher rents for units located in historically designated buildings than ones that aren’t considered historic landmarks.

2) Tenant needs cheap rent

There are always tenants that need cheap rent. Owning a historic building can be very expensive and difficult. There are several ways to help make it cheaper for tenants, including historic building leases. It also makes it easier for them to afford. The less money they have to spend on rent is more money they have left over for other things such as maintenance and labor which can add up quickly.

3) Tenants don’t want any renovations done to the space they inhabit

It’s not easy to renovate a commercial space and many people don’t want to be displaced for months or even years. They prefer to move in when their business is ready, rather than have their plans forced on them by a landlord who needs time and money to carry out renovations. This can be especially true with owners of small, local businesses where every day they need to interact with customers at their business.

4) Tenants don’t want a long-term lease

Many tenants have a business that changes very quickly and they don’t want to be stuck in an office space for years. They would rather take a short-term lease to change locations if it’s necessary.

5) The deal can be mutually beneficial

Landlords and tenants each want something from one another and they’re usually happy to negotiate in order to get it. Landlords can want a tenant who will give them repeat business, a long-term lease or even cash up front. Tenants want flexible rental terms, cheap rent or no broker fees.