The Rental Contract Of Your Office: Things To Know

Rental Contract

Before signing a rental contract for your office, you must be clear about the content it must include, the key clauses to avoid extra costs and the guarantees that may be required.

The first thing that you must be clear about is that the contract must reflect very well the use that you are going to give to the property.

It is because if you do not make the use of the property clear then you could have problems with licenses, taxes, etc. Also, you have to stipulate who will be in charge of obtaining the necessary licenses if you do not have them.

Also, and although it seems obvious, you have to make sure that the person who is going to sign the rental contract has the power to do so. As that their signature validates the contract.

To do this, look in the company deed of incorporation or ask if it has a special power that has been granted before a notary.

Rental Contract Period

The landlord may want to force you to commit to the contract for a minimum period.

Legally you cannot do it; there is no minimum period established by law. But it can include a “Mandatory Compliance” clause specifying that minimum time limit.

Keep in mind that based on that clause, you can establish deficiencies, that is, periods free of cost and that are usually one month for each year of mandatory compliance that be firm.

You can even request aid to establish the business, that is, its owner assumes a part of the cost of setting up the new tenant. It can be a fixed or a variable depending on the contracted surface.

Guarantees And Assurances

They can be legally required to cover a situation of non-compliance with your contractual obligations. They can be in cash or through bank guarantees, which involve more expenses (an interest rate must be added to the cost of the guarantor entity).

Expenses Included In The Rent

Make sure that expenses included or not included in the rental income are specified well to avoid surprises.

Typically, the owner will pass on the common expenses such as garbage fees, IBI, parking fords, energy consumption, and security and cleaning of the common areas depending on the contracted square meters concerning the total building.

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