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Commonly people plans to rent commercial property for their existing business expansion or for a new venture. But there are some very specific things that a person need to consider before signing the deal with a landlord.

From outside it may seem so simple to the person and apart from the obvious factors- rent, location, tenure and available facilities; there are other important aspects and if overlooked, can leave the person into the hell lots of consequences. Estate agencies like Realtors BD has came forward to ensure the potential tenants that all those aspects are being addressed and considered before renting a commercial space.

Lease Terms: Going through the lease terms is one of the most important things to consider before renting a commercial space. Simply, each terms needs to be addressed, discussed and tailored to fit both the tenant and the landlord. 

Service Charge: Generally speaking- commercial buildings require tenants to pay a service charge for general building maintenance. So before renting the space it’s also commendable to know the service charge and mention it clearly in the contract. 

Advance Rent & Security Deposit Settlement: These two has to be clearly discussed, disclosed, understood and must be mentioned including adjustment methods and procedures. Advance rent and security deposit varies depending on the type of property, location, demand and landlord’s need; means it can be different for different properties but 6 months rent or equivalent is a standard for commercial property. 

Repairing & Improvement Responsibilities: Be well aware of the repairing requirements because they are an important aspect to consider before renting a commercial space. Usually small maintenance and repairs are done by the tenants and major issues such as roof leakage or fixing structural defects falls over to the landlord. In addition, when a tenant damages or degrade the property will need to put it back into the original condition at the time of leaving. 

Exit Clause & Termination Process:

Above everything there is a fact that needs to be made clear at the time of renting a commercial property, way out or an exit procedure. Just think- if your business experience a tough time or it does so well and you need to hire more people and accommodate or may be you need more space then what?

So, if exit strategy isn’t there then you have to face potential conflicts with the landlord. Usually this can be avoided by having an exit strategy with notice period. A two or three months notice period is the standard for exiting a tenancy agreement and that has to be agreed by the both tenant & landlord. 

Out of Usual Office Hours Accesses: This is very common now for some businesses that they need 24/7 access into their offices. Offices or commercial setups like BOP, Customer Service, Outsourcing Services, Security Services, Automobile Repairing Workshop, Garments Factory, Warehouse, Distribution Center etc need access to their offices during the night time & even at the weekend. Therefore, this is worth checking if the property can be accessed at night/weekends and all facilities like electricity, water or central AC is functional. 

Rent Increment Provision & Percentage: Mostly the landlord includes an incremental clause into lease agreements if not this needs to be addressed not to receive a wanted surprise of rent increase. Standard rent increment happens every after 2/3 years and at a rate of 10%. 

Subletting or Renting to 3rd Party: Some businesses use their offices seasonally, some operates during the late hours and some operates specific days/hours so a lot of businesses sublets and releases their premises to other business. This has to be considered and shouldn’t be limited to specific business use. 

In this article we have tried to explain what are the most important aspects to consider when renting a commercial space and how you can avoid unwanted problems. Thinking of these all and tackling alone can be a challenge for professionals who are much busier in their own profession. Therefore, Realtors BD (a leading real estate agency in Dhaka) can be a suitable option for searching and renting a right commercial property.