Frequently Asked Questions (FAQ's):
Are there Any Additional Monthly Costs Tenants are Responsible for Over and Above the Base Rental?
In most cases, Tenants are responsible for the water and electricity consumed on the leased premises as well as any increase in rates and levies for the duration of their lease. In certain instances a pro rata share of refuse removal, cleaning, sewerage and security on top of the basic rental.
Are there Usually Restrictions on How I can Use the Property?
Yes, Landlords will usually restrict how the property can be used. The lease will specify a “permitted use” with reference to the zoning (eg GB1 offices). The use can, at times, be very specific to ensure that there is proper mix of businesses within the Landlord’s development and which do not cause clashes between businesses.
It is important to ensure that the permitted use specified in the lease is clear and wide enough for your purposes.
Can I alter the Leased Property?
This is dependent upon the terms of the lease and the nature of the works. Leases generally set-out the alterations a Tenant can carry out. Generally, the shorter the lease the less the Tenant will be able to do.
Alterations are generally dealt with in the lease as follows:
- Structural Alterations - Generally this is not an option for the Tenant
- External Alterations - The Tenant will not generally be entitled change this
- Non-Structural Internal Alterations - The Tenant will be permitted to carry these out subject to written approval from the Landlord who's consent cannot be unreasonably withheld or delayed
- Non-Structural Partitioning - The Tenant should be able to erect and remove non-structural partitioning without the Landlord's consent, however, may need to notify the Landlord of what has been done
Is there a Typical Lease Length for Commercial leases?
The term of commercial leases varies but are generally between 3 and 5 years in length. There are instances where private landlords agree to shorter term leases of a minimum of 12 months.
What Supporting Documentation Must Tenants Provide to Support their Lease Application?
FICA Documents are required to accommodate all Lease Applications. These documents vary depending on who is entering the Lease and include:
When does the Deposit Become Payable?
Deposits become payable on acceptance of a lease agreement by both the Tenant and Landlord. This should be paid prior to occupation of the premises by the Lessee.
- Company / CC / Trust / Sole Trader registration certificate & relevant documentation
- Proof of current/primary business address
- Copy of ID or passport for each director / member / surety
- Copy of proof of address and ID for the person duly authorised as the tenant representative
- Confirmation of a valid business bank account (i.e. a stamped bank letter or cancelled check)
- If applicable, a Tax clearance certificate and proof of VAT registration
- If applicable, a board resolution giving one person authority to act on behalf of the tenant in terms of the proposed lease.