Saturday, 17 August 2019

4 Questions to Ask the Commercial Property Owner before Renting the Space

When an independent business needs to be set up, you need workspace to operate from. For that purpose, you can either purchase or lease a commercial property. Leasing property from industry leaders like ForumProperties is a hassle-free process.  When signing the lease, there are many things, which might get overlooked. This could create an issue later on between the landlord and the tenant. It is better to take your time and clarify things rather than doing it in a rush. There are many questions that you could ask, but there are some that you must. Do ask the following questions before you sign the lease:

  1. What Will the Term of the Lease Be?

With the rising rental costs, the desire for a long term lease has shifted from the landlords to the tenants. A typical term is anywhere between 3 and 10 years and is negotiable. Get clarity on the term and the starting date of the lease to avoid problems later on. It is possible that the previous tenant delays his moving out or that the contractor working on the premises needs an extension to complete his work. It is better to keep a buffer to avoid working out of a mobile office.

  1. What is the rent and what does it involve?

The rent could simply be a flat charge paid by the tenant per month or it could have an additional component of electricity consumption, real estate taxes, insurance and maintenance and operational charges. Be very clear on what components are involved in the lease and who pays for each component.

  1. Are You Allowed to Sublet the Premises?

Are you allowed to get a substitute tenant or sublet the premises in case you need to shift out before the end of the lease term? Do have a clause for this in the contract. If the landlord agrees, you will need to get a sub-tenant with similar standards and you will need to continue to take the responsibility of paying the rent.

  1. What Is the Renewal Clause?

The renewal clause can vary from one owner to the other. Some might decide to auto renewing the lease unless otherwise requested. Others could ask you to leave once the lease ends or sign a fresh contract at the prevailing rates. You could probably sign a lease, which gives you preference if you choose to extend the lease.

There are probably more questions that would have got triggered in your mind. Make a list of all your doubts and clarify them to your complete satisfaction before you sign on the dotted line.