Are you looking for a commercial property on rent in India? Then be prepared to handle some different situations that may arise on the way. Usually signing up for a business property for lease in Ghaziabad or any other cities is a lot different than renting a house to live in. and when the moment comes, you have to be ready to deal with some troubles. Also, there may be some risks connected in taking a commercial place for rent. So, it is better to be fully aware of the market trends and prevailing conditions. Here are few important things you need to know while going through this crucial phase of life!
Things to Know While Taking Commercial Lease:
- Lease Terms: What is the basis of a lease? ‘No term, no lease.’ But the leasing office in Ghaziabad or in some other states in India may get some variations. Usually, the commercial leases are shorter than their residential embodiments, hardly 7 to 10 years. Now, you may surely consider a longer term if you are about to put plenty of works into fitting out a unit like a retail shop or a restaurant and want to stretch the entire cost over a longer period. Also, you can go for a shorter lease if you are just dipping your toe into the market and not really want to be chained to a property and the responsibilities. Always do remember that a longer lease gives the owner major security and is likely to put more dealing power just at your fingertips.
- Alienation: It sounds kind of science fictional for some people, but usually alienation means the leaseholder right to dispose of the property, also by leasing or transferring it to a third party. Sometimes it requires the landlord’s consent while some other time it can be granted by the tenants. The more prevailing the clause is, the less the lease is worth for; sometimes it’s even worth for nothing!
- Other Expenses: You need to keep a record of the other expenses as there are many expenses related to it. The contract should clearly lay down who will bear what expense. The expenses usually are related to maintenance or repairing or some certainly shared utilities. In terms of commercial leases, the costs are related to protecting the property. Sometimes the agreement also mentions a limit on the amount to be spent on repairs by the leaseholders.
- Financial Advice: A financial adviser plays an important role here because in case the agreements require the business to purchase leased equipment or goods, it could rule out your right to claim rent as a tax deduction. Hence, before you signed up, check the tax liabilities and deductibility of with the help of a financial adviser.
Indeed leases are complex documents and if not been maintained and balanced properly, it can lead you some serious troubles. Hope these things will clear your confusion and help you out.