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  • Profile photo of Kara47Kara47
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    @kara47
    Join Date: 2012
    Post Count: 28
    November 28, 2012 - 8:32 am

    Hello,

    A couple of questions about Commercial Leases:

    Who draws up the lease – the landlord or tenant?

    If I am subletting a room within an office who is responsible for fitting a lock to the door – landlord or tenant?

    Any recommendations of good Commercial Lease Agreement templates & where to purchase them?

    Thanks,

    Kara.

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    November 28, 2012 - 9:02 am

    Firstly, are you the owner of the property? If not, then you will need to seek consent to sublease from the owner. Generally a solicitor will prepare a sublease (a slightly more technical document than a lease as the sub-leasehold must be for a period less than the leasehold). You will need to get lessor consent to install a lock on the door (if it is their fitout), the lessor may install the lock but it would still be at your cost (there is no landlord/sub-tenant relationship).

    If you are the owner you can get a form document from the REI in your state or from legal stationers (possibly). A real estate agent can prepare a lease for a period of less than 3 years (which does not require registration but may vary depending on which state you are located).

    Profile photo of Kara47Kara47
    Participant
    @kara47
    Join Date: 2012
    Post Count: 28
    November 28, 2012 - 9:45 am

    Thanks Scott.

    I am not the owner, I am relocating my business & will be leasing from the owner a room & common area in a building with other tenants.

    I'm hoping to purchase a house mid – late 2013 & sublet rooms to others, so am interested in information from the landlord & tenant's point of view.

    Any advice greatly appreciated.

    Thanks,

    Kara.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    November 28, 2012 - 10:42 am

    That puts a totally different spin to the answer(s).

    As you are leasing from the owner a part of a building (eg consulting room or whatever), then a lease would be appropriate. It would be up to the owner if they attach a plan to the lease to confirm your leased area (eg front room), my preference would be a properly drawn lease from a solicitor (but you would be bearing the lessor's costs in lease preparation).

    As for the house scenario, you would need to use a residential lease (if it is to be used as a sharehouse) not my area of expertise though. If you were leasing the house on  a commercial basis (again as consulting rooms or offices), then a commercial lease would be appropriate

    Profile photo of Kara47Kara47
    Participant
    @kara47
    Join Date: 2012
    Post Count: 28
    November 29, 2012 - 10:23 am

    Thanks Scott,

    I downloaded a commercial lease template today, makes interesting reading.

    It states that the lessor is responsible for the costs of the agreement, as you said. It also said that landlord is responsible for security & locks, but whether this is strictly only the outside of the building is open to interpretation I suppose.

    I've been running my business from sublet room with no formal lease in place & it's been quite satisfactory, unfortunately we all have to move out. I've only dealt with a Residential lease before & am getting to learn the main differences. Commercial seems to be heavily in favour of the landlord, so probably a good potential investment down the track!!

    Cheers,

    Kara

    P.S.  I'm sure you have lots of mates!

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