Madison Property Management Agencies And The Leasing Process
The process of leasing is vital and critical to real estate. However, most property owners are not as well versed in the process and choose to let realtors or commercial real estate management agencies handle the leasing process. Because one cannot undermine the importance of constructing a reasonable and near perfect lease it is important to understand the leasing process and what constitutes a good lease that is favorable to the tenant and the lessor.
A simple lease comprises of the following:
· A lease defines the responsibilities and rights of the owner as well as the tenant towards the property. This includes financial responsibilities and dues.
· The lease pre-defines the rent, late payment penalty and the one time security deposit which is agreed upon by both the lessor and the tenant.
· The lease mentions the compensation that the tenant is subject to in case of any damage to the property during his/her stay. Some leases also stipulate the ceiling of liability for the lessor and the tenant.
· It specifies the role and key functions of the tenant towards maintenance of the property.
· A new lease is constructed for every occupancy / property in the construction and not for every individual occupying the property.
· The lease makes specific amendments according to the purpose or the business of the tenant.
While framing the lease, the commercial real estate management service keeps in mind the interest of the property owner for every clause in the document. During this process a real estate management agency like Madison Properties takes various factors of the property into consideration. These factors are at first discussed with the lessor and only then forwarded to the tenant. Some of these factors are:
· Lease Tenure
This is one of the most important point in a lease. The duration of the lease is decided only after consulting with the lessor. At any point in time the lease can be extended only with the lessor’s permission.
· Security Deposit
The sum of the security deposit is decided considering the premises of the property and the purpose for which the tenant is renting the property.
· Rental Guarantee
This is similar to the guarantee that a bank demands when sanctioning a loan. The amount of the guarantee or the kind of guarantee varies from lessor to lessor.
· Critical Amenities
Certain in built amenities like water supply and exterior construction are strictly under the authority of the property owner.