News Blog - Commercial
HOW TO AVOID TENANCY ISSUES IN A COMMERCIAL PROPERTY LEASE
There are no real ‘tricks of the trade’ when managing your commercial property. General common sense and an experienced property manager can go a long way for both parties to stay happy throughout the lease term.
Steps to a stress free and mutually successful business agreement
Step one: Ensure the commercial terms are agreed upon
Ensure the commercial terms are drawn up in a Heads of Agreement and signed off by both parties prior to instructing a lawyer to prepare the lease. This should guarantee there are no disputes over the commercial terms during lease execution and over the course of the lease term.
Step two: Have a lawyer present
Always have a lawyer prepare the lease documents. A lawyer with experience in commercial leases is highly recommended and this allows the deal to be in order and run smoothly.
Step three: Keep the lines of communication open between landlord and tenant
Make sure the tenant’s obligations are clearly highlighted by the lawyer in the lease document. Keeping the lines of communication open in these beginning stages between landlord and tenant is imperative, which takes us to step four.
Step four: Make sure to obtain approval from applicable regulatory bodies
If there are to be any fit out works undertaken by the tenant, be sure approval is obtained from the appropriate regulatory bodies. Examples of these are local councils, and must always happen prior to any works commencing.
Step five: Seek a property manager
As already pointed out, employing an experienced property manager to handle your property is crucial for not only you, but your prospective tenant as well. Having your property in capable and professional hands allows you peace of mind and assurance your property is maintained.
Step six: Have a pre-lease inspection
Conduct a pre-lease inspection of the property and document the condition of the tenancy prior to lease commencement. This step is beneficial for both landlord and tenant. It is even better if you can take photos to document, and your smart phone is the perfect way to do this.
The final step is for the owner to make sure the mechanical services of the building, for example lifts, air-conditioning, intercom etc have service agreements in place and are maintained properly. For commercial property leases, most tenant issues arise due to issues with the breakdown of these services and can add unnecessary strain to everyone involved. Therefore, having all these agreements in place from the beginning of the lease is the best way to handle them.
Speak to a commercial property specialist
As you can see from the above steps, being organised and knowing what you’re dealing with from the start is the best way to be sure your commercial property lease is set up to succeed.
At TGC we specialise in commercial property, get in touch with us today so we can discuss your options with leasing for your business and what we can do for you!