The lease agreement should also include signs and similar rights. Many commercial leases contain a compromise clause to resolve this type of dispute. An arbitration clause requires the parties to use and accept an arbitrator`s decision instead of submitting legal proceedings. You should also be prepared for your commercial tenant to ask for special considerations. It is a one-way street. Commercial leases are often negotiated far more than residential rents, so you and your lawyer need to think ahead about special applications from a potential tenant that might be acceptable. You may need to terminate the lease (the lease is taken care of by another person) if you decide to sell your business or if you can no longer work. You need the owner`s permission, so make sure your rental agreement states that he cannot withhold their consent inappropriately. When negotiating a rental agreement, try to avoid rent revisions based on the percentage of turnover.
This means that you agree to pay a basic rent, and once a certain level of turnover is reached, an additional rent is paid on the basis of a percentage of turnover. When negotiating your lease, make sure that the standard clauses indicate that you must be informed in writing of a default and that you have sufficient time (at least 14 days) to correct the standard before action is taken against you. A special condition could, for example, stipulate that “the tenant installs a new store front at their own expense within two weeks of the start.” If you are considering renting real estate to a commercial tenant or wondering how you can negotiate a commercial lease, Lawyers at Owen Hodge Lawyers would like to help you design a lease that protects your interest. We can also help you look ahead to anticipate specific considerations that a potential tenant may ask for. Please call us to agree on 1800 770 780. You may be required to take out insurance to cover things such as building damage and public liability. You should avoid any indemnification clause in a tenancy agreement that requires you to compensate the lessor in case of loss, illegal act or damage.
