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  • End of final right of renewal period

    Hey property talkers, any advice for me? My commercial tenant's lease period is drawing to a close this year. This was the final of 2 right of renewals. Do I need to hit up my lawyer for a brand new deed of lease? I want to bring the rent up around 8% to market value too.

  • #2
    A new deed is my guess Merlot Mike but your lawyer will know for sure or poss a commercial lease agent.

    Plus we have a few commercial investors on PT so you’re likely to get a answer that’s more fact than a guess.

    cheers,

    Donna
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    • #3
      Originally posted by donna View Post
      A new deed is my guess Merlot Mike but your lawyer will know for sure or poss a commercial lease agent.

      Plus we have a few commercial investors on PT so you’re likely to get a answer that’s more fact than a guess.

      cheers,

      Donna
      Thanks Donna.

      Comment


      • #4
        Originally posted by donna View Post
        A new deed is my guess Merlot Mike but your lawyer will know for sure or poss a commercial lease agent.

        Plus we have a few commercial investors on PT so you’re likely to get a answer that’s more fact than a guess.

        cheers,

        Donna
        I come here first in order to keep interactions with my lawyer to a minimum

        Comment


        • #5
          Hi, yep, a new lease. Bear in mind though that the lease preparation costs are usually split between you and your tenant. So you should only have to pay half. Everything is up for negotiation though.

          So if you really wanted to keep them, you might pay for all of it. Or if you kind of want them to go, then make them pay for all of it - and don't worry if they leave etc.

          The other thing you can do, if it's only a small tenancy, like only a small part of your portfolio, is just do it by letter e.g. The lease will be extended on the same terms as the old one but with the following changes... and mention rent.

          Or you can do a similar thing, but get the Agreement to Lease form from the ADLS. You can buy them online.

          Just realise that the latter 2 things are legally binding, so be sure you know what you're doing.



          Squadly dinky do!

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          • #6
            Originally posted by Davo36 View Post
            Hi, yep, a new lease. Bear in mind though that the lease preparation costs are usually split between you and your tenant. So you should only have to pay half. Everything is up for negotiation though.

            So if you really wanted to keep them, you might pay for all of it. Or if you kind of want them to go, then make them pay for all of it - and don't worry if they leave etc.

            The other thing you can do, if it's only a small tenancy, like only a small part of your portfolio, is just do it by letter e.g. The lease will be extended on the same terms as the old one but with the following changes... and mention rent.

            Or you can do a similar thing, but get the Agreement to Lease form from the ADLS. You can buy them online.

            Just realise that the latter 2 things are legally binding, so be sure you know what you're doing.


            Great insights, cheers.

            Comment


            • #7
              Critical Question. Does your tenant want to stay? Is it still a good fit for their business?. They may be looking at other premises as the lease ends.
              Last edited by charlotte30; 06-04-2021, 09:35 PM. Reason: Adding more comments.

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              • #8
                Originally posted by charlotte30 View Post
                Critical Question. Does your tenant want to stay? Is it still a good fit for their business?. They may be looking at other premises as the lease ends.
                Good question. I think he is happy. His business took a hit during lockdown and I reduced rent by 50% for two months but he seems to be getting back on his feet now.

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