FOCUS ON LEASES
Recent years have seen a slew of regulatory and policy changes which impact on residential property investors. And that’s motivating growing numbers of investors to exit the residential market in favour of the commercial market.
But investors who make that move have to be aware that being a commercial landlord is very different to being a residential landlord. First up, they will need to become familiar with the meaning and effect of commercial lease documents.
To that end, this article provides a basic overview of commercial lease documents and the meaning and effect of some of the terms and conditions commonly included in them. It also points out some of the practical considerations that investors should take into account before they sign on the dotted line.
ESSENTIAL LEASE TERMS
A commercial lease must contain the following terms expressed in writing:
• The parties (ie: the landlord and tenant) and the premises to be leased must be clearly identified.
• The term of the lease
