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If a tenancy agreement does not provide for an extension of the term to five years, the law gives most tenants the right to do so (legal option). To exercise this option, a tenant must use a notice of practice and notify the lessor at least 30 days before the end of the tenancy agreement. The disclosure statement contains details of the proposed terms of the tenancy agreement and must be communicated to the tenant at least seven days prior to the conclusion of a tenancy agreement. TIP: If you do not exercise an option until the due date or in the manner defined in the lease, this may result in your lease not being renewed by the owner. TIP: You should take seriously the risks associated with rehabilitation and relocation. If you are unable to negotiate fair compensation, you should check whether the potential risks are profitable for your business. The lessor is able to claim all legal and other costs related to a lease or sublease assignment on your part. These documents must be made available to the tenant at least seven days before the conclusion of the tenancy agreement. If this clause is included in the rental agreement, you must provide the owner with information about your turnover. This information can be used against you in future negotiations or if you decide to sell the business. When negotiating your lease, make sure that the standard clauses indicate that you must be informed in writing of a default and that you have sufficient time (at least 14 days) to correct the standard before action is taken against you.

Where a retail rental agreement contains a rent provision to be determined in whole or in part on the basis of the company`s turnover, the tenant should receive a copy of the voting form before the provision is registered. The tenant has the choice to base the rent on the turnover and must fill out and make this form available to the landlord. Make sure that the proposed lease offers you renewal options so that you can continue trading from the premises after the end of the initial term. For many leases covered by the Commercial Tenancy (Retail Shops) Agreements Act 1985 (CT Act), a tenant who signs a new lease for a retail store is entitled to a minimum tenancy period of up to five years. If the tenancy agreement does not provide for a five-year term, a tenant has the option, under the TC Act, to renew it (legal option). Your proposed lease will likely have other conditions. Read our commercial rental publications for more detailed information. However, for leases that are not covered by the TC Act, make sure you are exempt from liability after the transfer date.

As a general rule, the costs of preparing and negotiating the lease can be agreed between you and the owner. It is a good idea to negotiate that each party pays its own trial fee, or at least there is a limit for your contribution to the owner`s expense. If you sublet part or all of your premises, you remain responsible for the lease. This may mean that you have to pay the rent if your tenant does not pay. It is important to conduct a credit quality check and ensure that the incoming tenant is able to meet the leasing requirements. You may need to renovate the premises for the duration of the rental. This is most often in shopping malls where the overall image of the centre is updated. In your negotiations, try to limit rehabilitation to every five or six years.

The SBDC can provide general advice on commercial rental listings. TIP: Have the premises checked independently before the lease is concluded. A status report, including photos, must be accepted by you and the owner.