C H E C K L I S T F O R L E A S I N G A P R O P E R T Y
Congratulations! You have made the important decision to lease a premises to run your business from. To ensure you get the best use of the site to run your business and therefor get the result you desire, there are a number of things that we suggest you need to review before signing a lease. Depending on your requirements, there can be several different sites available that could suit your needs, so you should take the time to view all the available sites that tick the boxes that are important to you. In most cases, well presented premises will lease quicker than a poorly presented site, so while you may be swayed by the first impression, a measured and reasoned approach and looking at all the factors will benefit you in your decision. On the following pages there are some suggestions for you to review that will assist in getting the right result. If you are at all unsure about anything then please feel free to call us. L E A S I N G A P R E M I S E S
As a prospective tenant, you will have a list of requirements for your business whether it is for retail, office, a light commercial operation or industrial workshop. Here are some of the suggested requirements you may want to consider when looking at a property; 1. Is this site suitable for your business type? E.g. retail vs office space. 2. Is the frontage or entrance an important part of your operation? 3. Do you need exposure to foot traffic? 4. Is there sufficient window display space for showing off your product? 5. Is the carpet or other flooring in good condition? Would a good clean help or do you need to replace it? 6. Is the paintwork in good condition? Or could a coat of paint brighten up the area and enhance it? 7. Are the facilities clean and do they all work? 8. What is the exact size of the site and buildings, will it work for your business? 9. Will a change of use be required? For example, for a new food outlet or restaurant. 10. If this is an industrial site, are all lifts, hoists, gantry cranes in working order? 11. Are all the services you require available to the site? E.g. Is there fibre and/or sufficient power to the site? (eg 3 phase) 12. Is there computer cabling installed? Is there a data room and sufficient available power points for all work stations? 13. How much is the rent and does this fit with your budget? 14. How soon is the property available and when would you require it? WH A T A R E Y O U L O O K I N G F O R?
The process for leasing a site can be made a lot smoother for everyone if a number of things are identified earlier rather than later. As we want to give you the very best chance of getting a site as soon and as painlessly as possible it will be of huge assistance if you have thought about some of the following detailed information. 1. Have you budgeted for the outgoings for the property? Including rates, insurance, body corp fees (if applicable), water rates, management fees and so on. 2. Do you need a detailed seismic report? The condition of the building could have an impact on your insurance. 3. Will a deposit be required and if so how much? 4. What lease term will be expected? E.g. 3yrs Vs 1 yr 5. Will you be expected to provide a personal guarantee? If so, we suggest you discuss this with your solicitor. 6. Is the landlord prepared to give a rent holiday for you to allow time to complete a fitout? 7. Does the rent compare well with other sites that are similar with regards the per square metre rate? 8. Is the landlord, prepared to spend any money on the site, for example to assist with the fit out or put carpet down etc. and how will that affect the lease? 9. When was the last review or valuation done on the property with regards to the lease? If your lease has Market rent reviews then this could have an impact on your future rental payment. P L A N N I N G C H E C K L I S T
10. Have you prepared a business plan to present to the owners to give them some assurance you can manage the lease? 11. Many landlords now require a statement of your financial position, eg do you own property and do you own all the assets of your business? 12. You may want to know if the site is available to purchase at a future date? 13. Is subletting any of the space you may not use a possibility? 14. What rights of renewals are available? 15. When are the rental reviews done and are they CPI or Market reviews? P L A N N I N G C H E C K L I S T
Once you have decided on a property to lease, then we will draw up an Agreement to Lease for you to sign, which we will then present to the landlord. To do this we will need the following key information: 1. Your full name. 2. What entity the lease will be under. E.g. a company or your own name. 3. What sort of business will you be using the premises for. 4. What date you want the lease to start. 5. How long will the lease be for. E.g. 3 years 6. Do you want rights of renewal? That is, after the initial term, do you want to the right to continue to lease the property for longer. 7. The name of your lawyer and what company they work for. 8. Additional clauses. We can help you with these once we understand your specific situation. T H E N E X T S T E P. . . Notes
Russell Atkinson M:027 452 5544 O: 06 757 3083 E: russell.atkinson@eieio.co.nz M A K E C O N T A C T Kevin Hight M: 021 746 371 O: 06 757 3083 E: kevin.hight@eieio.co.nz Find us on Facebook and LinkedIn to keep up to date with the latest listings and information. Our Commercial Team is dedicated to help you in this process, contact our Team to receive the support and experience in leasing your next property.
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