If you require a business premises for short term then taking on lease is the right option than going for license. The term may vary between 3 months to one year or even more. Signing a rental agreement is necessary before you take up some premises for establishing your office. Leasing is booking some property for rent for certain period and borrowing the property from the owner for your use. Leasing agreements are done for 3 years and sometimes for 10 years also. Each year the lease is extended for another year with the same client if both the owner and the tenant are satisfied with the requirements and conditions.

You must have oral discussions with the landlord regarding the amount of lease before signing the document. New code of practice has recently been launched for leasing property for commercial uses. If you are the landlord you should consult an attorney for drafting the copy of rental agreement. Similarly the tenant will also prepare separate copy of lease agreement from his side. If the parties have any dispute regarding the amount of rent or lease, you can have negotiations before finalizing the deal. Ensure that you have taken into account the state laws and codes in which you are residing.

Apart from rental amount, you have to make clear the leasing details such as length of lease, break clauses and service charges. Length of lease is the period for which you are renting the premises and service charges is the fees required to be paid by you or the landlord for the property. Dilapidation is the amount payable by the tenant to the landlord after the completion of lease period. It is good to make sure that the landlord will pay the property tax and any other charges of the said premises and the tenant will make payment of maintenance charges and current charges each month. The common area of the building can be shared by the tenant for his office use and it should be mentioned in the rental agreement. Lease amount can be paid in advance but sometimes the landlord may prefer to get monthly rent. After finalizing the amount you should enter the amount both in words and in numerals in the agreement copy.

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