The tenants have to take care of the essential points while going for commercial lease tenants. These key points are as follows:
1. Information about the rent-free period
The tenants need to know how long would be the rent-free period. The landlords are of the tenants must be in a respectable job. It is in this condition that they guarantee the rent-free periods. In this way, they can stay away from paying the business rates on their own.
2. The length of the term
The word “term” in the lease means the actual span of time that is decided for occupying the property. In case the tenants are looking for more flexible conditions under the contract, they need to go for a commercial lease legal advice. In case of a short term lease it is extremely advantageous to move from one place to another when your business requires.
For a huge investment, on the other hand, it is better to choose long term plans. There is more securely attached to it but at the same time, the tenant must be ready to face extended liabilities too. The leasing agency or the building contract lawyers Melbourne can give a better idea about the kind of lease that the tenant must consider.
3. Personal guarantees
The tenant can either take the lease in the name of the limited company or his personal name. In the case of the former, the landlords would look for the guarantee offered by the directors associated with the company. This is actually against the goals of the tenants. A rent deposit is a better choice as compared o the personal guarantee. Usually, this kind of situation is associated with the three months’ rent given by the tenant that is liable for return after the lease period is over.
4. Repairing cost
The tenant has to responsible for the repairs within and outside the property that he has got. It is important to know that what is liable for paying against the damages. Either it is full repair or the partial repair. In case of full repair lease, he is responsible for all kinds of repairs. For a tenant partial repair option is more preferable. He must bear the responsibility of interiors more than the outdoors. Thus, before going for the lease go through the Schedule of Condition to learn about the repair obligations.
5. Ending the lease
The tenant must enjoy the right of ending the lease whenever he likes or intends to do so. If such term or condition is added to the lease contract it means that you have the acquired the flexible option. Business conditions never remain the same. Being a business owner, you never know when you will be in the hot waters. The break clause offers the choice to continue or discontinue the lease as per the personal needs and requirements.
6. The legal liabilities
Being a tenant keep in mind that you are not liable to pay the cost of the legal procedures. The better option is that either side pays its own legal costs instead of bearing the burden of the other side. In this regard, it is important to understand the legal procedures. Check for the legal advisor who can be of great help.