Commercial Lease Agreement

Taxes and insurance should not be dealt with in this Utility section. They are dealt with later in the questions. Operating costs such as security, snow removal and collection of garbage are typically covered where the rent is a base rent plus "all operating costs". If you want to specifically name them with such rent, you will have to add them as other expenses below. Where the rent is a base rent plus specified operating costs, you can deal with those specific operating costs under the "Operating Costs" section below.

The tenant is billed directly and pays this expense directly to the provider of that utility. This expense would be in addition to any amounts paid to the landlord for rent.

The tenant pays their share to the landlord who then pays the amount to the supplier of that utility. If the tenant doesn't have a separate meter, it just pays its proportionate share of the total cost. This expense would be in addition to any amounts paid to the landlord for rent.

The landlord pays any utility charges to the supplier of the utility and the tenant is not directly responsible for this expense.

Prepaid rent is a rent payment (or payments) made to the landlord at the outset of the lease, which the landlord holds as security for the applicable rent payments.
This is different from a security deposit, which is a payment made to the landlord at the outset of the lease, which the landlord holds as security for damages other than rent.

A security deposit is a refundable sum of money the tenant pays to the landlord in order to guarantee their lease obligations will be fulfilled.
The landlord may use the deposit to cover damage caused by the tenant (normal wear and tear excluded) or failure to pay rent.

An inspection report is a written record of the condition of the property at the time the tenant takes possession. When a second inspection report is used at the end of the lease, it is used as a comparison tool to determine if the tenant caused any damage during the lease period.

The tenant is billed directly and pays this operating cost directly to the provider of that service. This expense would be in addition to any amounts paid to the landlord for rent.

The tenant pays their proportionate share to the landlord who then provides that service or pays the amount to the supplier of that service. This cost would be in addition to any amounts paid to the landlord for rent.

The landlord provides this service or pays any costs to the supplier of this service and the tenant is not directly responsible for this expense.