There is no denying that a well-negotiated commercial lease agreement leads to a congenial relationship between the landlord and the tenant. But it is not often that you hear about such sweet relationships and the reason is simple. Unlike residential tenancies, the laws governing commercial leases do not provide any protective rights to the tenants.
All that the landlords and tenants need to know about when entering a commercial lease in Kelowna and Fraser Valley is:
- The monthly rent amount and the increase
- The tenure of the lease
- Ramifications arising from issues like rent and eviction
- Consequences arising from breach of lease
- The rights and responsibilities of the tenant
For businesses searching for commercial space for lease in Kelowna and Fraser Valley, maintaining a healthy relationship with the landlord is a major responsibility. No wonder office owners need to plan and budget appropriately to counter the challenges and legal issues. That way, they can avoid potential mistakes or find themselves stuck with bad lease agreements.
Understanding the differences between commercial and residential lease
As a business owner trying to get good deals on office space for rent in Kelowna and Fraser Valley, don’t skim the basic aspects of the lease arrangement. You need to delve deeper to avoid the legal pitfalls. More important is identifying the differences between commercial and residential leases so that you don’t feel frustrated with the differences that often takes place between a business tenant and the landlord. Here is what you need to know:
- Unlike residential rentals, rent control has no impact on commercial rentals
- The entry privacy of the landlord and the protections applicable are different in a commercial lease agreement
- Late charges or fines do not usually apply to commercial tenants unlike residential tenants
- Compared to residential tenants, commercial tenants do not get longer vacating tenures
- A criminal record may hamper the approval of a commercial lease, so you need to discuss with your legal team, if you are searching for a commercial space for rent.
Therefore, you must consider the legal impacts before applying for a lease.
Factors affecting commercial lease
Here are four issues affecting tenants and landlord relationship in commercial lease agreements:
- Maintenance and repair issues
- Tenure of the lease
- Issues related to green technology implementation
- Using the property
What happens if the appliances are out of date or stop working in your office? The issues are completely negotiable but there shouldn’t be a bone of contention if the issues are clearly defined in the agreement. Generally, the landlord is responsible for maintaining and repairing the structures of the leased portions and the appliances therein. Unfortunately, issues may arise from ‘who’ caused the trouble. The best solution is working together to resolve the issues instead of involving in the blame game. If you are a business facing a similar issue regarding the commercial lease, make sure the resolutions, in the end, are well-documented to avoid disputes.
One of the major reasons why legal disputes arise in the agreement is regarding the tenure of the lease. Usually, the tenure of the lease is for a year but commercial tenants need to document whether the tenure can be extended and if so what is going to be the exact length of time. Needless to say, both the landlord and the tenant need to document the terms agreed upon to avoid unforeseen issues and circumstances. If you are getting a commercial space for lease for the first time, it pays to analyse the trends in commercial real estate development to know the vacancy rates better. Once you know whether the tenure of the lease affects you, negotiating with the landlord becomes easy at the beginning.
A majority of office spaces today need to implement green technology, affecting the relationship between landlords and tenants. Does the office you are planning to rent offer similar facilities? Try to read the agreement between the lines to know the consequences of malfunctions in equipment, disputes related to green equipment or smart technology, and the landlord not cooperating with the violations when the landlord refuses to cooperate under such circumstances.
Do you know what activities are permissible on the commercial premises or things you are prohibited to do? Using the commercial property is related to land usage and the zoning laws. If you want to avoid disagreements with the landlord, make sure you process the contract through the best realtor in Kelowna. Wondering which realtor to hire? Emil Anderson Properties is one of the names to reckon with when you are planning to get commercial space for lease and want an expert to guide you through different stages.
What can you do to avoid disruptions in a lease agreement? Making the contract well-defined and more understandable is the key to mitigating the risks and conflicts in commercial lease agreements.