What You Should Expect from Your Commercial Landlord

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When renting, an office is very similar to an apartment. Your landlord shoulders certain responsibilities and you should expect your landlord to honour them. After all, you have a business to worry about. You don’t have time to take on extensive upkeep of a property that you don’t even own. For this reason, having a good landlord in your corner can be a huge boost to your business.

Good commercial landlords understand that their job is just beginning when the lease contract is signed. They appreciate that they are in the business of keeping tenants happy, satisfied, and successful. There are several ways that commercial landlords can do this. Below, we cover some of the basics. Here’s what you should expect from your commercial landlord.

Contract incentives

Landlords have good reason to bring in tenants as quickly as possible. Many understand that they are competing with other commercial landlords in their area for stable, lucrative businesses that could rent for a long time and offer predictable and sustained income. Depending on the market availability for commercial properties at the time, some landlords might opt to offer various contract incentives to attract the best tenants. These incentives could include:

  • Cash contributions – Some landlords will make a lump sum payment in exchange for signing a lease.
  • Free fit-out period – Some landlords will give new tenants a rent-free grace period to fit-out the commercial space to suit their needs before the contract formally begins.
  • Lease Inducement Period – Lease inducement periods are less popular than they once were because the tax incentive behind them has been withdrawn, but you may still encounter them from time to time. Common inducements can include buying out the remainder of a tenant’s previous lease or covering moving expenses.

Prepared space

Tenants need to know that they are moving into a space that will not require a great deal of preparation. You should expect your landlord to have your commercial space ready for its interior fit-out. That means that the space is compliant with all necessary building regulations and codes (and you would not be out of bounds to request that your landlord walk you through this compliance before you sign). This includes a Building Warranty of Fitness and requisite insurance (recoverable from you as the tenant).

Remember that under the Health and Safety at Work Act 2015, both you and your landlord are considered PCBUs (Person Conducting a Business or Undertaking), which means you are both responsible for ensuring the health and safety of the workers on the premises. Coordinate with your landlord to ensure that the building’s health and safety needs are met.

Amenities and maintenance

Your office fit-out, prior to moving into your new commercial space, should include the office elements that are necessary to your business specifically, not necessarily to any business. Basic, universal amenities, such as the space’s plumbing, lighting, and HVAC systems, should already be in place and regularly maintained by your landlord. However, interior maintenance obligations do not generally include breakages or minor repairs. Make sure to lay these details out with your landlord as soon as possible.

Make the most of your office relocation

Whether you’re moving your existing office or opening your first, your landlord should be the least of your concerns. Let DB Interiors help you turn your new office into the perfect space for your business. With the top services for any office relocation Auckland wide, DB Interiors specialises in commercial designs and fit-outs for any business. Contact DB Interiors today to arrange your consultation.

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