A garage lease agreement is designed for renting a parking space, allowing a person or entity to use it for a specific amount of time, and for the specific purpose of parking a vehicle in exchange for rent. Commonly used in areas with limited parking or storage options, this legal agreement specifies the duration of the lease, payment terms, and responsibilities of each party.
While some parking may be included with a commercial lease, it often falls short of the necessary capacity. Lease agreements frequently allocate parking spaces based on the total square footage of the leased office space.
Who Needs a Garage (Parking) Lease Agreement?
- Vehicle Owners: Individuals seeking a secure location to store their cars, motorcycles, or other modes of transportation.
- Businesses: Companies requiring parking for employees or customers.
- Contractors: Those in need of storage space for equipment, tools, or supplies.
- Property Owners: Homeowners or managers looking to generate additional income by renting out their unused garage space.
The specific purpose of use can be detailed in the rental agreement and tailored to meet the needs of both the lessee and the lessor.
How to Lease a Commercial Garage (Parking) Space
To ensure you have sufficient parking, carefully review the terms of your commercial lease. Determine whether parking spaces are assigned or if there is access to a general lot. It’s critical for both the landlord and tenant to clearly outline their parking requirements and negotiate terms that reflect these needs in the contract.
When negotiating the lease, consider the following steps:
- Assess Parking Needs: Evaluate the number of spaces required for your business operations, considering both current and future needs.
- Review Lease Terms: Examine the lease to understand how the parking area is allocated – whether spaces are individually assigned or provided based on a ratio relative to the total leased area.
- Negotiate Terms: Discuss and negotiate the specific terms for parking with the landlord, ensuring that all details are included in the contract.
- Finalize the Agreement: Once both parties have agreed on the terms, you can draft a commercial letter of intent to outline the key terms, setting the foundation for the formal lease. After this, ensure all aspects of the arrangement are documented in the lease agreement.
- Execute the Contract: After reviewing and confirming all terms, both parties should sign the agreement, making it a legally binding document.
How to Write a Garage (Parking) Lease Agreement
When entering into a lease agreement for a garage parking space, it is essential to follow the steps below to create a legally sound document:
Step 1 – Add the Parties Involved
Provide the full name, address, and contact details of the landlord. Similarly, include the full name, address, and contact details of the tenant.
Step 2 – Describe the Leased Space
Specify the detailed address and the specific area within the property. Describe the dimensions and boundaries of the garage parking space.
Step 3 – Specify the Lease Term
Indicate the commencement and end date of the lease. Outline the terms for lease renewal or extension, if applicable.
Step 4 – Outline the Payment Terms
Specify the amount of rent due each month. Indicate the specific date when the rent is due. Identify the accepted forms of payment, such as bank transfer or check. Detail any penalties for late payments or bounced checks.
Step 5 – Add the Security Deposit
Provide the total security deposit required. Outline the terms under which the deposit will be refunded.
Step 6 – Detail Access and Keys
Specify the number of keys provided and any associated fees. Indicate the permitted hours for accessing the space.
Step 7 – Define Maintenance and Repairs
Outline the landlord’s responsibilities regarding upkeep and major repairs. Define the tenant’s responsibilities for day-to-day maintenance and minor repairs.
Step 8 – Clarify Permitted Use
Specify the types of vehicles allowed, such as cars and motorcycles. Indicate the items permitted for personal storage. Identify activities and items that are not allowed in the space.
Step 9 – Address Liability and Insurance
Define the limitations of the landlord’s liability for damage or theft. Outline the tenant’s responsibility for damages caused.
Step 10 – Establish Termination Conditions
State the grounds for early termination by either party due to a breach of contract. Specify the required notice period for terminating the lease.
Garage (Parking) Rental Lease Agreement Sample
Below, you can download a garage (parking) rental lease agreement template in PDF or Word format.
