Tenant Blunders

KS130070 (Small)There are two common blunders that tenants make in lease negotiations.

The first one is failing to exercise an option in the correct period as stipulated under the terms of the lease.

Many tenants overlook this and then express surprise when they find out that the owner is dealing with other prospective tenants.

Often the first the tenant hears of it is when their property manager emails them to remind them.  This lack of attention can be extremely costly to the business.  The rule of thumb is that it will cost a year’s rent to re-locate and it doesn’t matter whether the rent is $20,000 or $500,000pa.

Secondly, tenants consistently underestimate the amount of time that it takes to complete a lease transaction.  Agreement is the easy part.  Preparing the lease accurately and obtaining council approval is usually the biggest hurdle to overcome.

Tenants often work on an unrealistic deadline and forget about such things as Solicitors reading the lease, the time to get an approval and the time it takes to fit out the premises.

For helpful hints on these aspects call Alan Tonks of Raine & Horne Commercial 0425 302 770.

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