Hi,
I know I've been asking a lot of questions lately so I appreciate your patience and answers.
I've been approached by a party that is interested in one of our retail units for let, but he does not want to commit to a long lease, he wants to do a month trial to see if it is viable (it is not just a retail business, it would be working with a partner supplying stock so he doesn't want to commit until he knows it would work.).
Having only done std leases (1yr+) in the past, I am unsure how this would work. I will speak with a solicitor but hoped I could get some comments here first.
If it's a month lease:
Deposit - I would normally take 3 months but would you just ask for 1?
Rent - Is it usually higher than advertised rate due to uncertainty?
Duration - Do you contract out of LTA s24-s28 so it can be terminated at the end of a month with a months notice?
I said to them that they wouldn't have security on the property and if someone came along wanting a long lease...
Seems quite messy, my other thought was a 12 month lease with a break clause in there?
I appreciate anyone experience with this.
Q
I know I've been asking a lot of questions lately so I appreciate your patience and answers.
I've been approached by a party that is interested in one of our retail units for let, but he does not want to commit to a long lease, he wants to do a month trial to see if it is viable (it is not just a retail business, it would be working with a partner supplying stock so he doesn't want to commit until he knows it would work.).
Having only done std leases (1yr+) in the past, I am unsure how this would work. I will speak with a solicitor but hoped I could get some comments here first.
If it's a month lease:
Deposit - I would normally take 3 months but would you just ask for 1?
Rent - Is it usually higher than advertised rate due to uncertainty?
Duration - Do you contract out of LTA s24-s28 so it can be terminated at the end of a month with a months notice?
I said to them that they wouldn't have security on the property and if someone came along wanting a long lease...
Seems quite messy, my other thought was a 12 month lease with a break clause in there?
I appreciate anyone experience with this.
Q