A garage lease agreement is a document that acts as proof of the relationship between a landlord, who is the owner of the garage, and the tenant that is seeking to use the garage or parking space at a price agreed upon by both parties.
The tenant may have vehicles or large equipment that require a garage or storage area that is safe, professionally managed, and easily accessible as and when needed. The agreement is meant to protect the interests of both the landlord and the tenant over the period agreed upon by both parties.
The agreement is mostly used when the storage and parking space is limited and where there are condominium buildings. Space is usually rented out in square feet terms. It is important to prepare the garage lease agreement before renting the space to ensure both the tenant and the landlord clearly understand their obligations and those of the other party. The understanding helps to carry through the agreement without conflicts efficiently.
A garage lease agreement can alternatively be referred to as a:
- Parking space rental agreement
- Garage and storage rental agreement
- Parking rental agreement
- Parking spot rental agreement
- Parking space lease agreement
- Garage lease agreement
- Parking-storage-garage rental agreement
The document can be used by any two parties, where one is willing to lease the garage space and the other is willing to pay for the leased space. A business may rent an entire garage or a part of the garage space for setting up offices or for parking not only their vehicles but also those of their customers.
What is Included in the Agreement
A garage lease agreement should be well detailed and specific with information about both parties as well as the garage space.
The specifics stipulated by the agreement are as follows:
- Full names of the parties to the agreement, i.e., the landlord and the tenant
- A detailed description of the space being leased
- The period the lease agreement shall be viable i.e., the starting and ending dates of the lease
- Monthly rent plus other related payment terms
- Security deposit particulars for the leased space
- Stipulations on how keys and access to the garage space shall be transferred
- Consequences of the contract violation by either party
Both parties to the agreement should note that the document signifies legal agreement as well as financial consequences, and should therefore be completed with utmost care. In case the lease is inclusive of the whole garage, the total square footage should be estimated and incorporated into the lease. If just a part of the garage is being leased, its boundaries should be clearly outlined.
Remitting of lease payments is usually done every month, necessitating the lease document to specify the breakdown of the payments, how they shall be collected, and the course of action for overdue payments or returned checks.
Free Templates
Download free garage lease agreement templates here:
Violations by the Tenant
After the tenant has occupied the garage, they may engage in actions that violate the agreement, which can in turn; provoke you to take legal action.
Such actions include:
- Subletting the garage space to third parties devoid of the landlord’s knowledge
- Utilizing the space for other purposes apart from what is agreed upon in the agreement
- Conducting illegal activities on the leased space
- Obstruction that tends to affect how other tenants utilize their space
- Prolonging the lease period without advance notice being given to the landlord
“The garage lease agreement is considered legally binding due to its financial and legal obligation, and breaking the terms of the agreement can lead to punitive legal actions”
Conclusion
When leasing a commercial parking space, it is paramount to review and clearly understand the involved terms. Clarity of the tenants’ requirements and what the landlord can offer is crucial. The terms may include whether the leased spaces shall be assigned to specific employees and clients, or will they have general access to the leased space. It is also crucial to determine if the leased space can adequately meet the needs of the business. When considerations have been made and the arrangement has been mutually accepted, both parties can proceed to the execution stage where they sign the document and enter into a commitment.