The property management sector is among the industries that have experienced the positive effects of technology. In the past, issuing, reviewing, and signing leases required a physical meeting between the property owner and the tenant.
Today, things are different. Thanks to technological advancements, owners can now draft lease agreements online easily and send them to clients. On the other hand, the clients will sign the electronic document using software such as jSign and send it back to the lessor if needed.
Signing commercial lease agreements has several benefits. This article looks at these advantages. Read on to learn more.
Commercial Lease Agreements
A commercial lease agreement is a contract between a property owner and a commercial tenant. The agreement allows the tenant to rent the space for business or commercial activities. The word ‘commercial’ implies that the rented space is strictly for conducting business operations, not for residential purposes.
That said, commercial lease agreements will have different stipulations than residential leases. These leases are easier to customize to suit your business’s needs. However, you may have restriction clauses, depending on your lessor. Thus, you should review your contract thoroughly to ensure its content is reasonable and within your scope of agreement before signing.
An online commercial lease is an agreement drafted, delivered, and signed online. However, they have the same validity as a lease agreement that’s physically signed on paper.
Benefits Of Online Commercial Lease Agreements
Online commercial leases have numerous advantages. These include convenience, cost-effectiveness, time efficiency, reduced human error, safety and security, and sustainability. Find a more detailed discussion of these benefits below.
- They’re Convenient
Online commercial lease agreements are convenient for both tenants and property owners. First, they eliminate the need for in-person meetings. Instead, the property owner will offer the lease to their prospective tenant for review and signing using property management software. All the tenant has to do is sign the contract electronically, and the process is complete.
Second, online commercial lease agreements are available to commercial occupants around the clock. This enables them to review the contract anytime, regardless of time or location. They can quickly check things like maintenance procedures and rent due dates without contacting the owner.
Furthermore, property owners enjoy hassle-free lease renewals thanks to online commercial leases. Once a contract has expired, they only need to send a new one to their occupants for signing, offering convenience.
- They Save Money And Time
Commercial leases typically constitute 20-30 pages. Printing these agreements is an expense and can be costly where multiple tenants are involved. In some instances, you could end up printing multiple copies for one tenant because of adjustments. However, this isn’t the case with paperless lease agreements, as printing costs are non-existent.
Additionally, these online lease agreements are economical because there’s no longer a need to commute for the property owner and the occupant. This allows both parties to channel their finances toward more critical operations.
Similarly, not having to show up physically also helps save time. After signing the contract, tenants can review it online rather than having in-person meetings to discuss maintenance and renovation procedures. If more clarification is required, the tenant can contact the owner online and receive timely feedback. This, too, saves time, enhancing efficiency.
- They Reduce Human Error
Automating commercial lease agreements minimizes human error that could occur from writing specific data manually. Online commercial leases can also reduce mistakes on the tenant’s side. It’s easy to skip important sections when filing information on paper, but submitting insufficient details online is difficult.
For example, mandatory fields in online forms, such as a person’s name, are often marked red. When these sections are unfilled, proceeding to the next step may be impossible. This helps reduce the potential for human errors in online commercial lease agreements. Consequently, this fast-tracks the lease signing process and streamlines move-in activities.
- They’re More Secure Than Lease Agreements In Paper
There’s a high risk of paper records being stolen or destroyed during a natural calamity or fire. This can have a profound effect on your business operations. For example, theft puts your tenants’ sensitive information at risk. This breaches confidentiality and can damage their trust in your business.
Likewise, losing these documents in a fire incident or natural disaster can stall your business operations. Correcting such incidents can also be quite expensive.
On the other hand, managing your records online can counteract these outcomes. For example, anyone requiring access to online commercial lease agreements must be authorized to safeguard your company’s sensitive data.
Similarly, your contracts can remain secure despite extreme events, especially if stored in the cloud. Therefore, you can still retrieve the agreements using other gadgets if other devices break down. All you need is access to your cloud storage.
- They Promote Environmental Sustainability
Online commercial lease agreements differ from traditional contracts because they don’t use paper. Reduced paper use safeguards the environment in several ways. First, it prevents deforestation, thereby preserving trees and minimizing greenhouse gases. Furthermore, you decrease your carbon footprint by using less ink.
Paperless lease signing also conserves energy used to manufacture paper and transport the final product. Energy conservation promotes environmental sustainability.
Many consumers are inclined to associate with a business involved in sustainable courses. Therefore, online commercial lease agreements help acquire like-minded lessees, enabling your business to thrive.
Property owners or managers and their tenants can massively benefit from online commercial lease agreements. The primary reason is that they can conduct all lease-signing activities online.
Online commercial leases eliminate the need for in-person meetings and are always available, promoting convenience. Second, they save property managers and occupants time and money, leading to hassle-free lease signing. Neither party needs to commute or print documents as they’re available online, which is cost-effective.
Online lease agreements also reduce human error as everything is automated. Other benefits include data security on both the tenant and owner’s end and environmental sustainability.
With all this in mind, the benefits of online commercial lease agreements make it an appealing option for both the lessee and the lessor.