What to Consult with the Body Corporate About When Leasing a Commercial Space
Category Article
Leasing a commercial space involves important considerations and discussions with the body corporate to ensure a smooth operation and compliance with building regulations. Here are key topics to discuss with the body corporate before signing the lease and moving into your new commercial space:
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Lease Terms and Conditions:
- Lease Duration and Renewal Options: Understand the length of the lease term, renewal options, and any conditions for lease termination.
- Rent and Payment Terms: Clarify the rent amount, payment schedule, and any potential increases during the lease term.
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Rules and Regulations:
- Operational Guidelines: Familiarize yourself with the specific rules regarding business operations, including hours of operation, noise restrictions, and any limitations on business activities.
- Alterations and Renovations: Discuss the process for making any modifications to the space, including obtaining necessary approvals from the body corporate.
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Fees and Levies:
- Monthly Levies: Determine if you are responsible for any levies in addition to rent, and what these fees cover (e.g., maintenance, security, utilities).
- Special Levies: Ask about any upcoming special levies or additional costs that might arise.
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Maintenance and Repairs:
- Common Area Maintenance: Clarify who is responsible for maintaining common areas such as hallways, elevators, and parking lots.
- Unit-Specific Repairs: Understand your responsibilities regarding repairs and maintenance within your leased unit.
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Security Measures:
- Security Protocols: Review the security measures in place, including access control, surveillance cameras, and on-site security personnel.
- Emergency Procedures: Familiarize yourself with the building's emergency procedures and protocols.
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Utilities and Services:
- Utility Arrangements: Confirm how utilities (water, electricity, internet) are managed and billed. Determine if there are any restrictions on service providers.
- Waste Management: Understand the protocols for waste disposal and recycling.
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Parking and Access:
- Parking Allocation: Clarify the parking arrangements, including allocated spots, guest parking, and any associated fees.
- Loading Zones: If applicable, understand the rules for using loading zones for deliveries and pick-ups.
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Insurance:
- Building Insurance: Verify what building insurance the body corporate provides and what it covers.
- Tenant Insurance: Determine if you need to obtain additional insurance for your business operations and personal property.
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Meetings and Participation:
- Annual General Meetings: Learn about the schedule and structure of body corporate meetings and how you can participate or raise concerns.
- Voting Rights: Understand your rights and how decisions are made within the body corporate.
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Compliance with Local Laws:
- Zoning and Licensing: Ensure that your business complies with local zoning laws and that you have all necessary licenses and permits.
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Dispute Resolution:
- Conflict Resolution: Familiarize yourself with the procedures for resolving disputes with the body corporate or other tenants.
By consulting with the body corporate on these aspects, you can ensure that your lease agreement aligns with your business needs and that you understand all responsibilities and expectations. This proactive approach will help you avoid potential issues and ensure a harmonious tenancy.
Author: Slate Volschenk