10 things to look out for in tenancy agreement for business office
This week, I'm helping a SaaS (Software as a service) company to review their office tenancy agreement. 🤗
Here’re 10 things I look at when reviewing tenancy agreement, if you’re reviewing your own without any attorny, you’ll also want to pay attention to these key elements too:
- Lease Term: Clearly define the lease term and renewal options, including any notice periods required for termination or renewal, to avoid potential disputes or unexpected lease terminations.
2. Rent and Payment Terms: Clearly outline the rent amount, payment schedule, any additional charges (e.g., utilities, maintenance), and penalties for late payment or non-payment.
3. Maintenance and Repairs: Clearly state the responsibilities for maintenance and repairs, specifying who is responsible for common areas, shared facilities, and the SaaS business owner’s rented space.
4. Use of Premises: Define the permitted uses of the rented office space for the SaaS business, including any restrictions on alterations, modifications, or subleasing without prior consent from the landlord.
5. Compliance with Laws and Regulations: Ensure the SaaS business owner’s compliance with applicable laws, regulations, and building codes, such as accessibility requirements or zoning restrictions.
6. Insurance: Specify the types and amounts of insurance coverage required, including liability insurance and property insurance, to protect both the SaaS business owner and the landlord.
7. Termination and Break Clauses: Clearly articulate the conditions and consequences of lease termination, including any notice periods, early termination fees, or break clauses allowing the SaaS business owner to exit the lease under specific circumstances.
8. Default and Remedies: Outline the actions to be taken in the event of default by either party, including remedies such as notice periods for curing defaults and the right to terminate the lease.
9. Indemnification: Include clauses that protect each party from liabilities arising from the other party’s actions, specifying the indemnifying party’s responsibility for any legal claims or damages.
10. Dispute Resolution: Establish a process for resolving disputes, such as mediation or arbitration, to avoid costly and time-consuming litigation.
It comes in handy when you have a legal agency to help you draft, review and update the legal documents to make sure they are compliant and up to date, at a fixed fee.🤗 #peace
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P.S. This is not legal advice, just information
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