What are commercial leases?
A commercial lease agreement is a legal document that specifies the rights and responsibilities of both the landlord and tenant when leasing commercial property.
This applies to individuals or companies renting or leasing the property. The agreement establishes the lease terms and obligates both parties to adhere to them.
The tenant, a renter or lessee, pays the landlord for the right to use the commercial property exclusively for business purposes during the lease period.
Which types of properties are considered commercial in Singapore?
Commercial real estate refers to any type of real estate that is not used for residential purposes. This includes entire buildings and individual units within them.
Examples of commercial property include workplaces, such as offices or office complexes.
Other examples are industrial structures like factories and workshops, retail establishments and shops, restaurants, cafés, and commercial kitchens.
Additionally, warehouses or other storage facilities are also considered commercial property.
Do I need a commercial lease agreement?
A commercial lease agreement is needed when a commercial property owner rents it to a tenant.
If the landlord doesn’t initiate a formal contract, a business renter may propose one.
For landlords, it guarantees that renters adhere to the lease terms and resolve disputes such as who bears repair costs. The lease also binds landlords to their obligations.
A written agreement also protects renters as it establishes their legal right to use the property commercially.
Simply put, the contract helps avoid any misunderstanding between the two parties.
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