What can an on-site property manager include in a lease agreement to protect a new tenant's business?

Including a cancellation clause in a lease agreement can provide essential protection for a new tenant's business. This clause allows a tenant to terminate the lease under specific conditions, which can be vital for businesses that may face unexpected challenges or changes in their operating environment. For instance, if a tenant's business does not perform as expected or if there are significant economic changes that impact their ability to operate, a cancellation clause offers them a way out without severe financial penalties.

This arrangement provides a safety net for the tenant, allowing them to manage risks more effectively. It reflects an understanding of the uncertainties inherent in running a business, especially for new ventures that may not yet have established a steady customer base or revenue stream. By ensuring that this clause is part of the lease agreement, property managers can enhance the attractiveness of the lease to potential tenants, knowing that it includes provisions that are considerate of their needs.

On the other hand, while a security deposit is standard in lease agreements to provide the landlord with assurance against damage or unpaid rent, it doesn't specifically protect the tenant's business in terms of operational stability. A rent increase clause could actually impose financial stress on the tenant, making it less appealing. Lastly, a subletting option, while providing flexibility, does not directly address