With frosts on the ground it might seem a little early to be talking about spring.

But when it comes to the property lease market and looking out to the future, the market’s current sway in favour of tenants is an ideal time to  look for the medium to long term advantages by cleaning up your lease.

Obviously if one is about to sign a new lease or renew an existing one, there are opportunities to strike a good deal given landlords’ eagerness to have space occupied in this market.

But there are a few other more subtle terms and conditions that can be reviewed now, that could significantly advantage tenants in three or more year’s time.

For example, there is always a clause in leases relating to “hold-over”. This is when a tenant stays on beyond the expiry date of its lease, and often coincides with a tenancy being renewed or reviewed. Tenants may need the leeway of continuing their occupancy for a short period of time before a new lease is negotiated or they vacate the premises.

If this occurs and it has not been otherwise specified, the landlord can set its own terms and conditions during the hold-over period. This may include rent hikes and other stringent terms that could carry on into a renewed lease.

Whatever the markets do in the next couple of years, it is going to be a considerable advantage for a tenant to have flexibility in their lease, and put themselves in a position with an upper hand for negotiations in the future.

There has been no better time than now to set terms and conditions in a lease to deal with situations such as a hold-over clause. This will avoid any potential of stand-over in the years to come.

Tags: commercial property lease, commercial property lease negotiation, commercial property leasing, commercial tenancy rights, Property Leasing, recession property strategies

This entry was posted on Tuesday 23rd June 2009 and is filed under Property Leasing. Both comments and pings are currently closed.