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  1. #1

    Default Tips for tenant leasing commercial property

    Hi everyone,

    I have been looking to lease a commercial for my business. What are the things that I need to know or things to ask the agent in regards to leasing the property besides the cost or rent, opex and size of the building. Thank you.

  2. #2

    Default

    make sure you have a good record of the condition with. any wear and tear as at the end of the tenancy this is likly the condition that you must return the premises in.

    get a lawyer to check the lease

  3. #3
    Join Date
    Jan 2010
    Location
    Hibiscus Coast
    Posts
    1,807

    Default

    What about a commercial lease on a residential property? Does it have to comply with insulation requirements if people living there?

  4. #4
    Join Date
    Apr 2009
    Posts
    1,009

    Default

    Its good for you to have Right of Renewals. If you are a new business you might rent for 1 year with the right to renew for a another 2 year term, for example, then another right to renew after the second term, etc. Without this you might find yourself without a lease after the first term.

    Another thing to watch for is market rent review. You might like the rent initially bt then after the first term at rent review the rent might go up to market level. Try to have rent adjustments by CPI only.

    Get a breakdown of the complete OPEX and building expenses, including building WOF, which you will be expected to pay a percentage of.

    Have a lawyer review the fine print.

  5. #5
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,451

    Default

    Yes, get a premises condition report.

    Try and get away without signing a personal guarantee, but you might not be able to.

    Try and have short terms with lots of rights of renewal e.g. 2x2x2x2 rather than 4x4, but again you may or may not be able to.
    Squadly dinky do!

  6. #6
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,673

    Default

    Hi Trinz22,

    1) Get legal advice
    2) opex are often are often understated. Make sure you fully understand what you will and won't be liable for.
    3) What do you have to lose from a guarantee? Generally you have to personally guarantee the lease. That is one of the reasons many business owners have their major assets in a Trust, so that if in a worst case you had to default on the lease, you wouldn't lose your home
    4) Is it possible you need to expand? If so be very careful on the term!

    Ross
    Not sure where to start, book a free chat for 5-10 minutes https://cswaikato.co.nz/services-pro...s-hamilton/201
    Ross Barnett - Coombe Smith Property Accountants


  7. #7

    Default

    Yes good idea to break it down to multiple renewals if you can get away with it


 

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