The property lease checklist addresses some of the most common issues that occur when a property lease is being negotiated. After reviewing it, you should be in good position to understand what to look for in any property lease agreement. Of course, before signing a property lease agreement, make sure that you review it.
• Nature and Duration of the Lease: Determine the term of the lease, and when the lessee is entitled to possession.
• Rent: In the contract, make sure that the amount of rent and when and how it is payable is stated.
• Lease Commencement Date: Please note that the agreement signing date and lease commencement date are different. Lease commencement is the date when your rent starts and you get the possession of the property.
• Escalation Clause: Since most leases contain a rent escalation clause, mention the exact amount of increase every year.
• Renewal: Is there an option to renew, and what is the term of each option? What is the rent for each renewal period? How must the option to renew be exercised?
• Taxes and Expenses: Determine who is responsible for the property taxes. If the lessee is agreeing to pay only for increases, is there a stated maximum? Who pays for society maintenance charges, parking? Who is responsible for extraordinary or structural repairs or alterations?
• Termination: Check the agreement termination clause carefully, is there any lock-in period, what if you want to terminate before the expiry of lock-in period (what is the penalty).
• Grace period: Are there grace periods for fit outs? What are the lengths of the grace periods?
• Enforcement: Are damages specified for breaches of various lease conditions?
• Use Restrictions: The nature of the tenant's prospective use of the premises may lead the landlord to impose limitations or guidelines. Check the agreement for the same.
• Improvements: The tenant may wish to add "improvements'' to the premises which might be of value to the tenant, but not future tenants. Determine the extent to which the landlord will allow improvements.
5 Basic Things to Consider When Buying Property
Buying Property is probably the most expensive purchase you will ever make. Starting the process is often daunting, but by choosing the right location, size and time as well as ensuring quality and affordability, you will reduce the chances of making costly mistakes. Keep the following in mind when Buying a Property:
1. Location
The location of a property might possibly be the single most important aspect to consider when Purchasing a House. How many times have you heard the saying that buying the right property in the wrong neighborhood is worst than buying the wrong property in the right neighborhood? The importance of your choice of location lies in the fact that once you’ve purchase the property, the location is the only factor that you can’t change. It is therefore extremely important to make the right decision.
Among the many things to consider when choosing a location is the access to public transportation, should you rely on it, and the quality and proximity of the schools, medical centers and shopping centers in the area. You might also want to check crime statistics, and school ratings.
Another thing many people do not consider is not just the neighborhood, but location of the property within the neighborhood. Also, visit the property during the day and night to get different views and find out what the crime levels are. The residents of the neighborhood can often provide you with the most honest opinion of the area, so make an effort to ask around.
2. Affordability
Experts believe that you should spend no more than 35% of you salary on the monthly Down payment on your home loan. Doing this will ensure that you have sufficient funds for other things that might need attention (home improvements, repairs or any emergencies that might arise).
When looking at a property, also find out what the monthly society maintenance bill comes to and if you can afford that. Remember to always inquire about any hidden costs.
3. Size
When considering the size of a property, you have to think long-term. Are you planning on starting or extending the family? Do you have plans to start working from home in the future? The answer to these questions should guide you in choosing the size of the property.
4. Quality
Walk through the property together and make a list of everything that needs to be fixed or amended. Also find out what these repairs will cost and add it to the price of the property.
5. Timing of Purchase
Ideally ever homebuyer would want to buy at the low end of the Real Estate market and sell at the high end. Basically this comes down to periods in the cycle generally referred to as a buyer’s or seller’s market. A buyer’s market is when buyers can cherry pick the best potential investments from the spread and drive really good bargains to boot. A seller's market shows a shift in bargaining power toward the seller. There is therefore no doubt as to when you would want to buy, but keep in mind that any long term property investment, if chosen carefully, are bound to show returns.
1. Location
The location of a property might possibly be the single most important aspect to consider when Purchasing a House. How many times have you heard the saying that buying the right property in the wrong neighborhood is worst than buying the wrong property in the right neighborhood? The importance of your choice of location lies in the fact that once you’ve purchase the property, the location is the only factor that you can’t change. It is therefore extremely important to make the right decision.
Among the many things to consider when choosing a location is the access to public transportation, should you rely on it, and the quality and proximity of the schools, medical centers and shopping centers in the area. You might also want to check crime statistics, and school ratings.
Another thing many people do not consider is not just the neighborhood, but location of the property within the neighborhood. Also, visit the property during the day and night to get different views and find out what the crime levels are. The residents of the neighborhood can often provide you with the most honest opinion of the area, so make an effort to ask around.
2. Affordability
Experts believe that you should spend no more than 35% of you salary on the monthly Down payment on your home loan. Doing this will ensure that you have sufficient funds for other things that might need attention (home improvements, repairs or any emergencies that might arise).
When looking at a property, also find out what the monthly society maintenance bill comes to and if you can afford that. Remember to always inquire about any hidden costs.
3. Size
When considering the size of a property, you have to think long-term. Are you planning on starting or extending the family? Do you have plans to start working from home in the future? The answer to these questions should guide you in choosing the size of the property.
4. Quality
Walk through the property together and make a list of everything that needs to be fixed or amended. Also find out what these repairs will cost and add it to the price of the property.
5. Timing of Purchase
Ideally ever homebuyer would want to buy at the low end of the Real Estate market and sell at the high end. Basically this comes down to periods in the cycle generally referred to as a buyer’s or seller’s market. A buyer’s market is when buyers can cherry pick the best potential investments from the spread and drive really good bargains to boot. A seller's market shows a shift in bargaining power toward the seller. There is therefore no doubt as to when you would want to buy, but keep in mind that any long term property investment, if chosen carefully, are bound to show returns.
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