PROPERTY NEWS - Whether you are entering into a commercial lease as a landlord or as a tenant, it is imperative that you have an understanding of the legal and contractual implications in doing so, and what your rights and obligations are.
This article does not purport to be exhaustive, but will highlight some important issues and aspects you need to be aware of when negotiating and concluding a commercial lease.
Beware the standard form lease
It may seem to be the simplest and cheapest route to use the letting agent’s or landlord’s standard form lease agreement, but unless the lease is tailored to suit your specific requirements, you could end up with problems later. These leases are generally designed to protect the landlord’s interests.
Premises
Describe the premises as accurately as possible, as to location and size. Attach a floor plan if available. Know what access and use the tenant has to common areas such as hallways, rest rooms, kitchens, lifts and whether rental will be charged on these areas and at what rate.
Beware the standard form lease
It may seem to be the simplest and cheapest route to use the letting agent’s or landlord’s standard form lease agreement, but unless the lease is tailored to suit your specific requirements, you could end up with problems later. These leases are generally designed to protect the landlord’s interests.
Premises
Describe the premises as accurately as possible, as to location and size. Attach a floor plan if available. Know what access and use the tenant has to common areas such as hallways, rest rooms, kitchens, lifts and whether rental will be charged on these areas and at what rate.
It is also imperative, if the rental is based on lettable area', as opposed to a fixed rental, that the parties agree on how the premises are measured, and what is included in the lettable area e.g. balconies, terraces, storerooms.
