Tenancy Reinstatement

[70wood 0]

I like to share this thought with friends here.

Many people, from small enterprise to big corporations rent commercial and industrial premises to run their business. One common thing I discovered is most are either unaware, or negligent of the fact that they need to restore, or reinstate their premises to its original condition when the lease expires unrenewed. Particularly the smaller businesses, many ended up unable to fund the reinstatement works, and being sued by landlord for its claims.

Some pointers here may be worth considering.

1. Depending on the kind of business one is running, it is best that additions to the premises be made as minimal as possible. Only do the essential ones. If necessary, avoid works that are structural and requires a professional person to erect, and will also requires a professional person to qualify removal.

2. Forecast your reinstatement cost into your rental and see if it really make sense. If not, re-negotiate the rental or look for an alternate space. A check with the market shows that contractors use a guide of between $5/- to $15/- per sq ft charge for reinstatement works.

3. It is prudent to put aside monthly contribution into a sinking fund. At the end of your tenancy, you will find it as a great relief.

4. Do not think that your rental deposit is sufficient in the first place. If you just scoot away by forgoing your deposit, your landlord can still sue you for any differences. Once you let the landlord does the reinstatement, he has no mercy on costs. I have seen tenants spending a few hundred thousand dollars, and had to plead with the landlord to let them go.

I hope this short posting is helpful to those who needs it.