Raul Valero of Nelson Mullins Riley & Scarborough. Courtesy photo Raul Valero of Nelson Mullins Riley & Scarborough. Courtesy photo

In Florida's real estate market, both landlords and tenants benefit from well-crafted lease agreements. For landlords, understanding certain key clauses and implementing strategic negotiation tactics can not only protect their interests but also enhance property value. This article explores several key clauses and negotiation strategies that are beneficial to the parties in general but in particular may help landlords protect their investments and optimize returns.

Key Clauses

Rent and escalation clauses. Rent is a critical component in leases. Commercial lease terms generally extend beyond one year, so most commercial leases have a rent escalation clause that outlines how rent will increase over the term of the lease. For landlords, a rent structure with a clear escalation clause is essential for predictable income and ensures that landlords can keep up with inflation while maintaining a fair structure to tenants. This will help foster better long-term relationships between parties.