When you intend to lease a property, it is a best best practice to write a letter of intent, outlining the initial terms of the lease. A letter of intent is usually written by the landlord after an initial mutual agreement is made between a potential tenant and a landlord. The purpose of writing a letter of intent is to make sure that the deal is sealed and made serious business.
The letter of intent is basically an outline of key issues that have been discussed such as who pays for renovations, when the lease ends and how periodic lease payments are made. This letter reflects serious commitment on to lease / rent on each side. You may also mention other aspects of the lease negotiations, including timelines and moving in or out.
Typically, a letter of intent does not have any legal value, unless it is treated legally, for which you will have to involve a lawyer. But mostly, a letter of intent plays a psychological role in developing your relationship with a potential landlord. Mostly, letters of intents are drawn up where lease terms and conditions are not too straightforward. Depending on how you want it to sound, a letter of this sort may be just a simple letter or complicated content outlining each and every detail of the lease agreement.
Here is a sample that you can refer to before you write your own letter of intent for leasing a property:
Letter of Intent for Leasing a Property
Letter of Intent for Lease
September 17, 2016
Mr. Ulysses Pollock
Bank of America
120 Prune Street
Forrest City, AZ 18363
Subject: Letter of Intent for Lease of Commercial Property
Dear Mr. Pollock:
With reference to our verbal conversation earlier this week, I am pleased to present to you the following Letter of Intent for the lease of 188 Main Street, Forrest City, AZ. The following summarizes the basic nonbinding terms and conditions upon which the Tenant (Mr. Ulysses Pollock) would be interested in entering a lease:
Proposed Tenant: Mr. Ulysses Pollock
Proposed Landlord: Mr. Oliver Manning
Leased Premises: 188 Main Street, Forrest City, AZ 19029
Square Footage: Approximately 6500 rentable square feet
Lease Commencement Date: November 15, 2016
Tenant’s Occupancy Date: November 15, 2016
Length of Lease Term: 5 Years, 0 Months
Initial Base Rent: $ 1500 per square foot
Utilities: Tenant shall be responsible for separately metered utilities.
Janitorial Services: Included
Improvements to the Premises: Landlord will be responsible for work outlined in the renovation addendum (enclosed).
Please note that this letter of intent is submitted solely as an inducement to negotiate in good faith. No term of this LOI may be considered binding and any legal issues are encouraged to be taken up by involving legal counsels. All further details will be included in the formal lease agreement.
Sincerely,
Oliver Manning
| Tenant Agreed Upon By:
_______________________ ________________ _____________
Landlord Agreed Upon By: _______________________ _________________ _____________ |