Yes, a verbal lease agreement can be valid for a business property in certain circumstances, but it is far from ideal and often not legally enforceable in many jurisdictions. For non-resident business owners or those operating e-commerce businesses, a written lease agreement is essential for legal compliance and business operations.

Limitations of a Verbal Lease Agreement

1. Enforceability: While some states may recognize verbal lease agreements, proving their terms in court can be nearly impossible without documented evidence.
2. Lack of Legal Protection: Verbal agreements often fail to outline critical terms like rent, duration, maintenance responsibilities, and termination clauses, leaving both parties vulnerable to disputes.
3. Inadequate for Non-Residents: For non-resident business owners, verbal agreements don’t meet the documentation requirements needed for proof of address, bank accounts, tax filings, or e-commerce platform compliance.

Why Non-Residents Need a Written Lease Agreement

• Proof of Address: A written lease agreement serves as a valid document for e-commerce platforms like Amazon, eBay, and Walmart, which often require a U.S. address for non-resident business owners.
• Legal Compliance: A formal agreement ensures compliance with U.S. laws and protects both parties from misunderstandings or disputes.
• Business Requirements: Non-residents typically rely on professional services to obtain a unique U.S. address and create a compliant lease agreement to support their business operations. 

Learn more here:

– U.S. Lease Agreement: A Legal Requirement for Entrepreneurs.

Need Help with a Lease Agreement?

If you’re a non-resident looking to rent business property, Business Globalizer provides solutions tailored to your needs. From offering a unique U.S. business address to drafting a fully compliant lease agreement, we simplify the process for non-resident entrepreneurs.

A verbal lease agreement might be valid in rare cases, but a written lease agreement is always the safest and most reliable option, especially for non-resident business owners.