Seven things every tenant should know or do before signing a lease

Signing a lease, whether long- or short-term, need not be a daunting task.

This according to Leon Breytenbach, national manager of the Rawson Property Group’s commercial division, who argues that a little effort beforehand will ensure a successful outcome.

Here are a few tips you need to know to ensure a smooth process:

Take your time

Allow yourself the time to consider all aspects and implications of the lease. Do not make your decision from a position of desperation; refuse to be hurried into a decision until you are satisfied that it is right for your business and that it contains all the necessary clauses.

Get the low-down on the landlord

Inasmuch as you will have to provide references to the landlord, it will pay you to contact the previous tenant to find out whether the landlord is fair and reasonable in his dealings with his tenants and whether he is willing to address any problems which may arise. Ask how the building is financed, whether the landlord’s portfolio includes other properties and if he has any partners, so as to determine the financial health of the entity to which you will pay rent.

Meet the landlord

Be direct and honest in any negotiation with your landlord, never employ strong-arm tactics or misrepresentation as this would create tension or distrust, even causing you to be rejected as a tenant. Mutual trust is a prerequisite when entering into a contract, so being open and discussing your queries will help to lay the foundations for a successful working relationship.

Know what is included

Some commercial properties include parking and utilities in the rental contract while others exclude them. Ascertain which repairs or maintenance will be for your cost and what the landlord will cover. Confirm this with the landlord before signing the lease so as to be fully aware of how these financial costs will affect your budget.

Optimal location for your business

Your business will have certain specific locational requirements, for example, you may need increased foot traffic, a larger parking area or greater visibility from the road. If your employees or clients depend on public transport, then your premises will need to be located near accessible transport routes.

In-going inspection

“Once the landlord has offered you the option to rent the premises, be sure to document any pre-existing damage or deterioration before signing the lease,” said Breytenbach.

This would include anything the landlord did not agree to repair after your initial inspection, such as stained or torn carpeting, broken blinds or damaged tiles. Stipulate any such damage in the lease agreement as pre-existing. It is advisable to take photographs of any pre-existing damage or deterioration at an in-going inspection, in case a dispute arises at the end of the lease.

Read every word

Before committing your signature to the contract, be sure that your lease agreement includes all the points you have discussed with the landlord regarding any improvements that have been guaranteed.

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