14 Apr Wa Business Lease Agreement
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. However, for leases that are not covered by the TC Act, make sure you are exempt from liability after the transfer date. TIP: Before signing a lease or lease, taking possession of the premises or paying for funds, seek independent legal, financial and business advice. Try to negotiate so that you don`t have to cover the owner`s operating costs. If this is not possible, try to limit them, so that only those that will benefit your premises. Also negotiate a maximum amount of the increase over the duration of the lease. With a gross lease, a tenant can pay a fixed rent – only the basic rent. Make sure that the proposed lease offers you renewal options so that you can continue trading from the premises after the end of the initial term. You may need to renovate the premises for the duration of the rental. This is most often in shopping malls where the overall image of the centre is updated. In your negotiations, try to limit rehabilitation to every five or six years.
Some of the most important conditions that are usually included in a lease agreement: if your landlord performs work that disrupts your business (including general maintenance or building renovations), you may be entitled to compensation. Read our guide on how to claim compensation for disruptions caused by the owner`s work. Where a retail rental agreement contains a rent provision to be determined in whole or in part on the basis of the company`s turnover, the tenant should receive a copy of the voting form before the provision is registered. The tenant has the choice to base the rent on the turnover and must fill out and make this form available to the landlord.