Leasing Guide For Lessee
EZYLeasing recommends you leasing guide before you embark into market in search for commercial space for your company. This is designed by the longed survey done by most skilled, educated and well-informed management team in the leasing business. We have knowledge of market dynamics and trends of demand & supply supported by the huge database generated by the surveys. By reading leasing guide you will probably come to know when you should start searching for space with setting prior points on mind. This book will give you reason for space change, List of things to think before you get changed your space, List of things to think once you have decided to change your commercial space such as cost of space on lease, other Operating Expenses, space Management Efficiency, when you should start to begin search for space, who should be involved in space selection process, List of things to think when you evaluate the available options and final the space for your company, what is Letter of Intent and when and why, what is next after the payment of token money and signing of letter of intent, what is lease agreement and when and why, at last, Legal relationship between both parties LESSOR and LESSEE.
Reason for change of space:
When your current commercial space makes you feel contented and fulfill your business requirements, but when the end of the lease agreement is imminent with your company, you will go for renewal of lease and negotiate a renewal of ease with the building owner (LESSOR) or go for another available option with you.

When your business requirements change such as sudden change in your total number of employees, unreasonable office overhead charges, your company got new order, new strategic alliance, cost cutting or austerity, financial reason and so on. When your company space becomes too large for you or too small for you then a very new space can make all stakeholders enthusiastic about your organization and could work as a launch pad to get better productivity and business operational that too cost savings.

When your company starts thinking about how to build a good brand value of the company then you would probably think about your current space that you are using and evaluate how is your current space reflecting the company value in your potential or as well as employees eyes. The quality of your building, location approach, local amenities and facilities that are meted out matters a lot and speak volumes about your company. So it could turn out to be the strongest reason for commercial space change to raise company core values and brands in your potential clients and company personnel.

List of things to think before you get changed your space
Always remember, to take commercial space on lease, it includes decisions that should be considered medium-to long-range business goals for leases and to achieve your business goals, this will include following questions:
  • Business is increasing or shrinking?
  • Company brand values.
  • Preferred location that suits to company stakeholders.
  • Company expansion in nearby future.
  • Change in company business procedure.
  • Change in company adopted technology.
  • Merger or acquisition
  • Joint venture.
  • Customer's effect.
  • Employee's effect.
  • Company current overhead charges.
  • Austerity or cost cutting.
  • Stemming the Attrition rate.
  • Opportunity cost.
  • Current company budget.
List of things to think once you have decided to change your commercial space
Cost of space on lease.
When you have already have decided to change your space then always remember negotiation of rent and tenant incentive are very volatile mostly depends on market dynamics and circumstances. For example when area is highly developed and beset with all local amenities and key facilities, vacancy rate are down then negotiation on rent and tenant incentive would be difficult and you may shell out more money for your dream commercial space as compared to low developed area of different sector of the same city. ezyleasing mainly focuses on the cost reduction strategies because we know people require cost saving options at every step of their business modules.
Other Operating Expenses.
Before you think about workplace change never underestimate other operating expenses, they add on company overhead charges. Other operating expense encompasses utility bills, civic body levied taxes, janitorial, maintenance, common area maintenance charges, security, electricity, gen-set charges and other taxes. This is very complex situation when you really do not know the size of these charges but your hired broker can navigate you through numbers of property where some of these expenses are not levies on LESSEE. You can capitalize building efficiency such as HVAC (heating, ventilation and air-conditioning) system and can save you money finally.
Space Management Efficiency.
Cost of space on lease.
This is very important factor in leasing for commercial space that is loading factor or total usable area. Sometime two building can avail you same size of work area but with different loading for example Building A and Building B both have same size and same rent per sq. ft. but vary in loading. Building A has 30% loading meaning you have less usable area and other common area such as lobby, corridor, pump house, lift take a big part of your valuable work area. On the contrary Building B has 15% loading meaning your company will use more work area as compare to first one option because less area for common purpose goes to loading that too with the same rent. So always keep in mind the loading factor, very important for space management efficiency.
When you should start to begin search for space?
It totally depends on your size of space requirements. If it is big naturally it will take good time but the size of space is small it may take short span of time usually depending upon the size of organization. It varies company to company, from large to small or medium. You should begin this process 3 to 12 months prior to your lease expiration. Even it can take 6 months to one year to complete the lease and relocation process for large or complex organizations. Depending on the size of your organization and current market dynamics and available options, but you just leave everything to us because we serve our client only with 100% verified properties and they will only visit the very same properties what they applied for visit through our online portal ezyleasing.com. That's the Core functionality of our work and unparalleled to any others organization working in this.
People involved in space selection process.
The company staffs, senior employees, human resources, IT, and all stakeholders, should be guided by the heads of company or any person who could influence the decision-making process should be involved to come on a final decision for space requirements. But here at EZYLeasing we can make this process much easier because our main center of attention is to cater our client at the utmost level and make him feel very special always once he approaches EZYLeasing in search for better commercial space that meets the complete requirements of his organization's stakeholders.
List of things to think when you evaluate the available options.
  • Make a short list of available options.
  • Consider timing, security and working hour of your company with other options.
  • Tenant incentives and other freebies.
  • Lease renewal option and current available option.
  • Your budget and current cost of space change.
  • Current available service with their service.
  • Available liberty or restriction with their options.
  • Location, infrastructure and easy approach.
  • Image and brand value before and after space change.
  • Business objectives will be met fully or not.
  • Efficiency of new space, space management for all staffs.
  • How long it will take you commute the current office and new office space.
  • Do you use public or private transport?
  • The number of restaurant and super-market and how much time you go there in your current space?
  • Moving from current working location to new workplace will benefit all or not, if yes, how many and how much regarding client interactions and company brand value.
  • Company staffs adaptability for future expansion and growth.
  • Availability of amenities and key facilities such as mall, market, bank, ATM, petrol pump, restaurants, hotels and so on.
List of things to think before you make a dash to final the space
  • Make a short list of available options.
  • Actual size of required space.
  • Final the location.
  • Need parking or not if yes, then for how many vehicles.
  • Amount of rent.
  • Maintenance, security, brokerage and other charges.
  • Working hour of your office and service of building in which you are shifting.
  • Security and approach method to the new space.
  • Lease agreements period, long or short.
  • Final the numbers of employees and other company staffs.
  • Think about company image and brand value.
  • Space technical requirement.
  • Infrastructure and transport system to the space.
  • Locality of your new final space.
  • Environmental considerations.
  • Renal and other terms.
Each point mention above should be ranked by you as per your priority or importance so you can mention a value to each important factor. Your EZYLeasing professional can help you through this evaluation process.
Letter of Intent when and why
When you have final the commercial space for your company then both parties LESSOR and LESSEE will hold the meeting to materialize the deal for lease agreement and negotiation. Both parties will sign a letter of intent once the particulars of a lease agreement are negotiated, after signing this documents, further procedure can be held for leasing documents and mainly for finalizing the workplace design particulars via this brief document that is generally does not bind the either party legally in leasing agreement, all happens in a gesture of faith.
After the payment of token money and signing of letter of intent.
Workplace design issue and Tenant Improvement come at last but the most after the letter of intent is completed once then the tenant improvement procedure begins. In this process you need a person with workplace design skills, who should be well-acquainted with your workplace design requirements as per yours company staffs for better design results. Workplace design, retrofitting, maintenance painting and the development should be viewed as company investment and space management strategy.
Legal relationship between both parties LESSOR and LESSEE.

After meeting, signing of letter of intent, lease negotiation, tenant incentives and transferring the token money to LESSOR then lease agreement is signed by the both parties as a medium to determine terms and conditions acceptable to both LESSOR and LESSEE and this includes memorandum of understanding that draw the further situation of both parties on which both are agreed. Leasing agreement usually encompasses security deposit for one to six month (in multiple of rent amount) plus one month rent in advance. Security deposit is refundable but application of it varies LESSOR to LESSOR.

We at EZYLeasing make all the complex and multifaceted steps for leasing easier for our valuable clients. The fundamental focus of the agency for all time is to accomplish realty dealings in a crystal clear, transparent and candid manner, which always helped us mounting good and long-standing relationship with our clients. We dole out superior relationship with Property landlord, Tenant, Individual, Professional, Developer, Investors and Realty Managers and are always eager to serve you with all our endeavors.

Difference Between Commercial & Residential leasing

Important guidelines to be considered by the owner and the tenant during a corporate lease.

Each LESSOR LESSEE who is concerned in the leasing/renting of a commercial or residential property in India both should be well acquainted about the guidelines and the statute of commercial residential leasing.

What is a lease?

This is an agreement between LESSOR LESSEE that states the lessee will pay the lessor to use his/her commercial or residential property with tangible properties like furniture set of computers and so on. In generalwords it is an agreement signed between LESSOR LESSEE where the tenant pays a rent amount to the landlord paying all the property charges regularly.

What is Difference between commercial lease and residential lease agreement?

The basic difference between commercial and residential leasing with respect to properties types use purpose when a LESSEE uses a property for commercial purpose he will come under the commercial leasing agreement and authority will step in and the both LESSOR LESSEE in a commercial lease agreement will have a greater negotiating and bargaining power when compared to the parties in a residential lease agreement. On the contrary when he uses residential property. The commercial property on lease is searched by a LESSEE for renting a space for various business purposes. On the other hand, a residential property on lease is again taken by a tenant to rent a home or a space to live in. A simple definition is that when a commercial leasing agreement is an initiated when the property is leased out for commercial purposes. This includes the lease of an office space, factory, manufacturing center, Go-Down and many other commercial properties.

How to break a Commercial Lease

There are many examples in which a lease is broken between LESSOR and LESSEE. It could be for residential and commercial one. It includes various types of approaches while breaking a leasing. One can do it by following the below steps:

When and why you should break your lease

It is very important that you should come to know when and why you go for lease breaking when you decide of breaking your commercial lease in a planned manner. In case of any genuine circumstances, you can follow all terms and conditions and break the lease and by doing you will save yourself from penalty.

A good communication with LESSOR prior to Lease Break

It is very important that you should have a good communication with your landlord especially informal chat about breaking the commercial lease so that you could know about the facts and the procedures and also know your landlord’s thoughts about the commercial lease termination in a receptive manner before signing the lease bond. It is always better to know your landlords behavior.

Give some Incentives to your landlord but when and why

If there is an argument between LESSOR and LESSEE regarding the breaking of commercial lease, then LESSEE can always assure his landlord of getting another tenant before he/she moves out or vacate the commercial space. This might lead to a peaceful settlement between LESSOR and LESSEE.

Abide by all the terms and condition

It is important a LESSEE should abide by all terms and condition and a person has to execute all the obligations and follow legal terms as mentioned in the lease agreement. The lease term also states that a LESSEE has to pay the rent till a new LESSEE arrives even though you are no longer residing in that commercial place or not using at all.

Hire a Lawyer if the need be

In some cases LESSOR does not agree to end commercial lease with ease, in such situations you should approach a lawyer. Otherwise you can also break a lease without a lawyer, but some time hiring a lawyer will give the LESSEE maximum protection. It is always significant that a LESSEE should read the entire document carefully before signing the commercial lease. Consider the exit terms and conditions.

Important Questions to be Asked to Landlord

In Residential property leasing when you get surprised by a house which looks great and perfect in all aspect, but this a duty of LESSEE to look beyond the fabric of that pleasant facade. We know that being a LESSEE many questions would be running on your mind while choosing a good property for your use. EzyLeasing will give you some list of question before finalizing a house.

Can a LESSEE redecorate a house according to his/her will?

Before you finalize a house on rent you should ask your landlord how and when you can decorate the house before you make any other changes in the structure of the house, you should get permission from the LESSOR and when he approves these changes only then you should go ahead.

Check all the appliances of the space for their working condition?

Check the entire home appliances for their proper functionality and efficiency before you shift your stuffs, you should ask what types of home appliances are provided in the house especially home Security equipments are very important in any house. Ask the landlord what security systems are there in the apartment and there are other extra charges landlord would make or all they come in basic rent. There is any requirement for repairing and servicing, if yes then talk it out to the landlord to get it repaired or serviced.

Ask for List of amenities and facilities which are included in basic rent.

Many multistorey apartment specially in metro cities have certain amenities like, fitness center, club house, tennis court and swimming pool, etc. and utilities like electricity, gas etc. included in the monthly rent.

Who will pay for maintenance and why & how long?

Sometime paying for services and repairing can be a sticky issue or become bone of contention between LESSOR LESSEE. A LESSEE should be double sure in advance for which repairs you are liable to pay for and why and how long.

Leasing Agreement What is in it for a LESSOR & LESSEE

Lease agreement has very important role while a LESSEE finds a new space. Having a good space is like you live at home. If you are a LESSOR and want to put your residential or commercial property on rent then it is necessary to have tenancy agreement always. Tenancy agreement is used to make the renting procedure between the LESSOR and LESSEE an easier one. Everything should be written including the rights and obligations of both the owner and the tenant because they are both equally responsible for having an appropriate tenancy agreement.

The LESSOR can either be the owner of the property or have the Power of Attorney. The tenancy agreement should be signed by the LESSOR. Basic information which has to be included in a lease agreement is the name and the address of both the LESSOR and LESSEE.

These are the following lines should be included in tenancy agreement.
  • Full details of the property rented.
  • Date and time of lease commencement.
  • Lease agreement should have duration of lease and escalation rate.
  • Mention of fixed rent and other expenses such as maintenance, service and civic tax.
  • Mention the amount of Security deposit in advance or it is interest free or not.
  • Terms and condition should be in tenancy/lease agreement including grounds of lease termination.
  • Detail about notice period and minimum lock in period if it is.
  • Details about make good clause. Condition and circumstances for Renewal of the lease.
  • Lease agreement should also include details about maintenance and repairs in lease agreement that who will pay or share the expanses.
  • Lease agreement should have details of fixtures and the fittings which are to be provided by the LESSOR. The flagged parking space also should be specified in the agreement.
  • Details about the late fee, if LESSE fails to pay rent on time then what would be the penalty.
  • Redecoration/Alterations of the office premises or rented space, it should be clearly mentioned that alterations to be done and not to be done by the LESSEE.

These above are the essential clauses which should be included in lease agreement while renting out a property.

Legal relationship between both parties LESSOR and LESSEE.

After meeting, signing of letter of intent, lease negotiation, tenant incentives and transferring the token money to LESSOR then lease agreement is signed by the both parties as a medium to determine terms and conditions acceptable to both LESSOR and LESSEE and this includes memorandum of understanding that draw the further situation of both parties on which both are agreed. Lease agreement usually encompasses security deposit for one to six month (in multiple of rent amount) plus one month rent in advance. Security deposit is refundable but application of it varies LESSOR to LESSOR.

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