Letter of intent to lease 2023 (guide + free samples)

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This post covers everything you need t know about a letter of intent to lease

You actually need a tool (legal tool) when you wish to engage in technical legal transactions like leasing a property to make sure everything goes as planned.

I’m telling you this because lease transactions frequently entail protracted negotiations that necessitate the assistance of legal protection.

A letter of intent to lease is the most effective document for legally expressing and safeguarding your intention to lease residential, commercial, or other types of real estate.

Among other things, a letter of intent to lease can assist you to set the terms and conditions of the lease before signing the actual binding lease agreement.

To help you get the most out of it, here I will take you through

  • What is a letter of intent to lease?
  • Why do you need a letter of intent to lease?
  • How do you write an effective letter of intent to lease?
  • Letter of intent to lease sample
  • Letter of intent to lease commercial property
  • etc.

Let’s get started

What is a letter of intent to lease?

A letter of intent to purchase real estate is a brief statement of facts written by a person to show his intention to lease a residential or commercial real estate to another person or organization.

Here is how this letter works

For example, if James wishes to rent out his home or commercial space, he may write a letter of intent to lease and send it to potential tenants who expressed interest to lease the property.

A letter of intent to lease is commonly initiated by a landlord, if you want to lease a property as a tenant you can communicate your intent through a rental application letter rather than a letter of intent to lease.

A lease letter of intent establishes and defines an agreement between two or more parties that will serve as the foundation for a future or proposed Lease Agreement.

Unless the parties agree otherwise, this letter is not legally binding.

When they want it to be binding, a clause indicating that the letter is legally binding should be included in the wording otherwise it will be difficult to enforce the letter.

Related

Why do you need a letter of intent to lease?

A letter of intent to lease is useful for both the potential lessor and the potential lessee.

Here is why

  • It will assist you in establishing the parameters of the lease agreement prior to signing the lease.
  • It will provide you with a specific schedule for completing the negotiations and moving in.
  • It will help you determine whether you are dealing with the right person or not. etc.
  • During the negotiation stage, it binds the parties and forbids them from discussing the same transaction with other parties.
  • etc

How to write an effective letter of intent to lease

A letter of intent to lease is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the recipient’s address, and state that you are intending to lease your property according to the terms contained in your letter.

Your letter of intent to lease must contain all terms and conditions of your expected lease.

Technically, a well-written letter of intent to lease serves as an advance lease agreement to your potential tenant.

You must be careful when writing it.

Send something that, if accepted, you may transform into a legally binding lease agreement by simply changing the title.

Here is how you can write an effective letter of intent lease

  • Provide your name/organization, address, and contact information
  • Include the date of the letter
  • Include the potential lessee’s name, address, and contact information
  • Provide the description of the property you want to lease (location, Block No. Lot no. etc)
  • Provide the proposed lease term
  • Provide the proposed rent
  • Specify the security deposit
  • State whether you wish the letter to be binding or not.
  • Provide a confidentiality clause
  • Include the termination clause (how the intentions should be deemed to be terminated)
  • Include the acceptance clause i.e how the intentions will be deemed to be accepted
  • Specify the governing law
  • Maintain a professional tone
  • Be honest
  • Signatures
  • Include any significant term or condition that you want the other part to know-parking, sublet, pets, smoking, maintenance, etc.

Letter of intent to lease sample

The following is a sample of the Letter of intent to lease a residential property

Your Name
Address
City, State, Zip Code
phone
email
website

DATE

[Potential lessee’s Name]
[Potential lessee’s Street Address]
[Potential lessee’s City, State, and Zip Code]

Re: Intention to Lease

Dear [Potential lessee’s last name]

I am writing with great enthusiasm to convey my desire to lease my apartment if we can agree on the terms and conditions outlined in this letter.

The purpose of this letter is to establish some of the basic terms and conditions of the undersigned parties’ proposed lease.

The terms set forth in this Letter [will/will not] become binding unless the parties agree and execute a more comprehensive “Lease Agreement,” as anticipated below by the section of this Letter titled “Binding effect.”

Effective Date

[write the date that this letter of intent will be deemed effective]

Lessor

[Insert the full name of the Lessor]

Lessee

[Insert the full name of the Lessee]

Property

Location: [City, State, and Zip Code]

Legal Description: Block # Lot: #

Property Type

The Property is defined as a [residential/plex/condo/ etc]

Lease Term

The lease will be for a fixed term of [number of months/years] beginning on the [start date] and ending on the [end date].

Rent

The monthly base rent of [amount in words and numbers] shall be paid on the first of each month, with the first payment due prior to or at the start of the lease.

Expenses

The Lessee must pay the following monthly expenses in addition to the Base Rent: [describe the expenses- electricity, gas heating, etc]

The Lessor is obligated to pay the following monthly expenses: [describe expenses- maintenance costs etc]

 Late Rent

If the Lessee does not pay the Base Rent within 15 days of the due date, a late fee of [amount in words and numbers] may be imposed each day until the overdue amount is paid.

(see: late rent notice to a tenant template)

Security Deposit

A refundable security deposit of [amount in words and digits] is required prior to or at the time of signing a lease.

Subletting

The Lessee may not sublet the Premises without first receiving the Lessor’s prior written consent.

Pets

The Lessee is permitted to have two pets on the premises. The following pets are permitted: Cats, dogs, and other small confined animals

Lease Termination

Each party has the right to terminate the lease by giving the other party at least (30/34/60/90 days’] notice.

(see: Notice to terminate a lease sample)

Binding effect

This Letter of Intent should not be considered binding.

The provisions mentioned above are merely for the purpose of establishing a future agreement, to which neither the Lessor nor the Lessee is bound.

(if you want the better to be binding, use the following clause)

Binding effect

This Letter of intent shall be considered binding.

Therefore, the parties acknowledge that remedies at law will be inadequate for any breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance.

The remedy of specific performance shall be cumulative of all of the rights at law or in equity of the parties under this Agreement.

Governing Law

This Letter of Intent shall be governed under the laws of the State of [name of the state]

Termination

This Letter of Intent will terminate if there has not been a formal agreement signed within [#] days from the Effective Date.

Acceptance

If you agree to the terms set forth above, please sign this Letter of Intent and return the duplicate copy within [#] business days of receipt.

LESSOR

Lessor’s Signature __________ Date __________

Print Name __________

LESSEE

Lessee’s Signature __________ Date __________

Print Name __________

letter of intent to lease pdf

Letter of intent to lease commercial property

Letter of intent to lease commercial property, commercial letter of intent to lease, letter of intent to lease commercial space

A commercial lease letter of intent is a document that outlines the leasing conditions for the commercial property before a binding Lease agreement is signed,

The letter’s main purposes are to demonstrate the tenant’s commitment to the rental agreement and to provide each party with essential information about it.

By outlining the terms in this way, you may speed up the negotiation process and ensure that there are no misunderstandings before you sign.

The following is the sample commercial letter of intent to lease

Letter of intent to lease commercial Space

Effective Date: [write the date that this letter of intent will be deemed effective]

Lessor: [Insert the full name of the Lessor]

Lessee: [Insert the full name of the Lessee]

Property:

Location: [City, State, and Zip Code]

Legal Description: Block # Lot: #

Property Use:

The Property is defined as a Commercial Space and the Premises will be used by the Lessee for business office space.

Lease Term

The lease will be for a fixed term of [number of months/years] beginning on the [start date] and ending on the [end date].

Rent

The monthly base rent of [amount in words and numbers] shall be paid on the first of each month, with the first payment due prior to or at the start of the lease.

Expenses

The Lessee must pay the following monthly expenses in addition to the Base Rent: [describe the expenses- electricity, gas heating, etc]

The Lessor is obligated to pay the following monthly expenses: [describe expenses- maintenance costs etc]

 Late Rent

If the Lessee does not pay the Base Rent within 15 days of the due date, a late fee of [amount in words and numbers] may be imposed each day until the overdue amount is paid.

Security Deposit

A refundable security deposit of [amount in words and digits] is required prior to or at the time of signing a lease.

Subletting

The Lessee may not sublet the Premises without first receiving the Lessor’s prior written consent.

Lease Renewal

Each party has the right to renew the lease by giving the other party at least (30/34/60/90 days’] notice.

(see: Lease Renewal Letter Sample)

Lease Termination

Each party has the right to terminate the lease by giving the other party at least (30/34/60/90 days’] notice.

Confidentiality

All Lease negotiations between the Lessor and the Lessee shall be kept confidential and shall not be divulged to anyone other than the parties’ respective advisors and internal personnel, as well as any relevant third (3rd) parties.

No press or other public releases will be issued to the general public concerning the lease without mutual consent or as required by law, and then only upon prior written notice to the other party unless otherwise not allowed.

Binding effect

This Letter of Intent should not be considered binding.

The provisions mentioned above are merely for the purpose of establishing a future agreement, to which neither the Lessor nor the Lessee is bound.

(if you want the better to be binding, use the following clause)

Binding effect

This Letter of intent shall be considered binding.

Therefore, the parties acknowledge that remedies at law will be inadequate for any breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance.

The remedy of specific performance shall be cumulative of all of the rights at law or in equity of the parties under this Agreement.

Governing Law

This Letter of Intent shall be governed under the laws of the State of [name of the state]

Termination

This Letter of Intent will terminate if there has not been a formal agreement signed within [#] days from the Effective Date.

Acceptance

If you agree to the terms set forth above, please sign this Letter of Intent and return the duplicate copy within [#] business days of receipt.

LESSOR

Lessor’s Signature __________ Date __________

Print Name __________

LESSEE

Lessee’s Signature __________ Date __________

Print Name __________

Letter of intent to lease commercial property pdf

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Isack Kimaro
Isack Kimaro

Holder of Bachelor of Laws (LL.B) and Post Graduate Diploma in Legal Practice. I am dedicated to providing valuable and easy-to-understand legal information for individuals at all levels of understanding. Whether you are a layperson looking to increase your knowledge, a law student striving to excel in your studies, or a practicing lawyer wanting to expand your expertise, I am here to help. I'm not creating content, I'm creating awareness to empower you to take control of your legal understanding and achieve your goals.