When leasing or managing retail centres, there are a variety of options available, which can help you place tenants. In most cases, leasing retail properties is regulated strictly by local laws. It is up to you to ensure that you know about all the local laws that may apply and follow them to avoid legal issues and problems later. Many people choose a commercial lawyer, such as V.S. George lawyers to help them understand all the rules in their particular area.
The leases that you use can vary depending on your site and location, but most of the conditions are common and helpful, so it helps to learn of some lease rental secrets to consider.
Spread It Out
The goal is to have a wide variety of leases, all coming due at a different time. For example, if tenant A’s lease is up in March, you may want tenant B’s contract to be finished in May or June. This gives you ample time to find a new tenant or renegotiate terms for the next period.
Some owners prefer to use a flat or fixed-rent lease. This means that the rent is locked at that particular figure for the duration of the term. This gives both you and the tenant stability. They already know how much rent they will need to pay each month, and you will be certain you get that amount each month. It can help both of you plan for financial hardship and plan budgets accordingly.
If the shopping centre tends to have difficulties, but you don’t want more vacancies, you may choose a percentage-only lease. It means that the rent paid by the tenant will be based on a fixed percentage of the monthly earnings. For example, you may agree upon a two percent lease. If the company learns more that month, they will pay you more than on a slower month.