by Jocey K
A COMMERICAL LEASE is a lease that is entered into a transaction for commercial or business purposes. When it comes to determining whether or not one should negotiate one, there are steps to consider. Here are some important steps.
The term of the COMMERICAL LEASE is very important because it can span a wide time frame. For example, one may be for a duration of three years. Others can even reach to ten years. Taking into account both the expiration and commencement dates should be done so one can determine whether it will be negotiable and for how long.
In regard to the property, checking the vacancy should be done. If the property is not vacant, the current tenant may raise issues. For instance, the tenant may not relocate or the construction occurring on the property may not be completed by the deadline. The tenant may also raise a disagreement over whether they can access the property at an earlier date so they can make installations and perform other improvement projects. The lease should cover the date for when the property should be completely ready and the moving date.
Determining rent for the property is a step where annual costs can be decided upon by taking into account the area of space per square foot. Rent can also be calculated by adding the costs the landlord pays in terms of operating the property, repairs, and taxes. It can also be established by the amount of real estate taxes, insurance, and looking into percentage leases.
Understanding subleases is important because a tenant can progress through one yet need to leave for any reason. If this happens, the tenant must be able to find another tenant to take the sublease for them. The new tenant must be able to pass the credit assessments and the landlord must decide if they meet the requirements to be a tenant.
Getting advice from professionals is also very helpful. Anyone considering going through this process can benefit from it. This way a starting point can be established and an outline of the process can be examined. Locally, people can get advice from a realtor or a lawyer who has knowledge on rental properties.
Those were some steps on how one can negotiate a COMMERICAL LEASE. Understanding the process of leasing and the costs is vital in the process. Knowing every date associated with one is also an important part of the process as well.
Get inside info on steps to negotiate a COMMERICAL LEASE in our guide to all you need to know about Commercial Leases in Aus on http://www.fivex.com.au