Length Of Rental Contract For A Business

[fanciman]

When setting up a deal for renting a business premisis, it is a good idea to have the deal last a long time, so that the landlord can't whimsically up the rent by 500%.

How long is it usually possible to make a rental agreement last?

[Sunbelt Asia]

When setting up a deal for renting a business premisis, it is a good idea to have the deal last a long time, so that the landlord can't whimsically up the rent by 500%.

How long is it usually possible to make a rental agreement last?

Most are three years plus an option of three years.

It is very important that you set what the increase rent will be in the second term of three years before you sign the original agreement. Also the legal language must be such that the option has already been granted by the Landlord, the second or third term lease lies solely with the lessee.

Any lease longer than three years must be registered with the Land Dept for it to be valid. The fee for doing so will be 1.25% of the total lease value.

The lease registered at the Land Dept can be 30 years and with some commercial leases it can be as long as 50 years.

The longer the lease, the better off you are.

www.sunbeltasiagroup.com