It lays out the written rules and expectations of a landlord and tenant for the duration of a commercial tenancy
A Commercial Lease Agreement is a contract between a landlord and a tenant in which the landlord rents out a property to the tenant for business or commercial use. The landlord allows the tenant to use the property for a specific period in exchange for rent payment. The tenant is the business or individual using the landlord's property for commercial purposes.
The main difference between a commercial lease and a residential lease is the purpose of use:
- A commercial lease is for business operations — such as offices, shops, warehouses, or other commercial activities.
- A residential lease is used when the property will serve as a living space.
Types of Leases under Nigerian Law
Periodic Lease
This lease has a start date but no fixed end date. It continues until either the landlord or tenant decides to end it by giving a written notice. Common types include weekly, monthly, quarterly, and yearly leases.
- A weekly tenant pays rent every week.
- A monthly tenant pays rent every month.
- A quarterly tenant pays rent every three months.
- A yearly tenant pays rent annually.
To end the lease:
- The landlord must issue a Notice to Quit and a 7-day Owner's Intention to Recover Possession.
- The tenant must issue a Notice of Termination of Lease to the landlord.
Fixed-Term Lease
This type of lease runs for a specific period agreed upon by both parties. Once the term ends, the tenant must vacate the premises unless the lease is renewed. The landlord does not need to issue a Notice to Quit when the lease expires (unless ending it early). The landlord only needs to serve a 7-day Owner's Intention to Recover Possession.
How to Use This Document
This agreement is used when renting a property for commercial or business purposes. The form should include the following information:
- Landlord's Details: Full name and address of the landlord.
- Tenant's Details: Full name and address of the tenant or business.
- Property Details: Description of the leased property — including its size, location, and use.
- Rent: The amount payable by the tenant. For fixed-term leases, rent may be paid once or in agreed installments. For periodic leases, rent is paid at regular intervals (weekly, monthly, yearly, etc.).
- Fixtures and Fittings: Items attached to the property for the tenant's use (e.g., parking spaces, office furniture, air conditioners, computers).
- Covenants: Landlord's covenants may include paying ground rent, ensuring peaceful enjoyment, and providing the property in good condition. Tenant's covenants include paying rent, maintaining the premises, and keeping it in good repair.
- Termination: Conditions for ending the lease and the required notice periods for both parties.
Once completed:
- The tenant reviews and signs the agreement.
- The landlord also signs with both landlord and tenant having signed counterparts for their records.
- After rent payment, the landlord issues a Rent Receipt as proof of payment.
Applicable Laws
In Lagos State, the following laws govern lease agreements:
- Tenancy Law, 2011: Regulates the rights and obligations of landlords and tenants. It applies throughout Lagos, except in Apapa, Ikeja GRA, Ikoyi, and Victoria Island.
- Land Use Charge Law: Imposes property tax obligations on property owners.
- Other Relevant Laws: Registered Land Law, Land Registration Law, Capital Gains Tax Act, and tenancy laws of other Nigerian states (where applicable).
From Template to Completed Document
You can easily fill out a form to generate the agreement. Once completed, you can edit and download the draft or proceed to sign it via our E-signature tool with your record securely stored on DocuProp for future management.
