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 7 details that avoid your lost in the Tenancy Agreement!

When a novice opens a shop or office for the first time, there are many miscellaneous things, especially lack of experience, and it is somewhat busy to deal with it. The following rental content is for the reference of novices who open a shop or office. 

1. Rental amount and deposit

The amount of rent and deposit must be indicated in the contract. Usually, you are required to pay a 2-month deposit (Deposit Security) and a 1-month deposit (Deposit Utilities), which are mainly used to ensure that the tenant will pay all the rent and utilities (eg, water, electricity, sewage fees) on time, and the owner must finally pay the original silver. Returned. In addition, the contract can also clearly stipulate that the tenant must pay the rent within a specific time limit, otherwise they may be fined ‘deferred payment of the fine’. 

2. Rental period

After discussing with the tenant, according to the result, the rental period must be written in the contract, during which the rent will not change. The owner can also renew the contract to provide the tenant to decide whether to renew the contract.

3. Decoration period

Basically, the house has been decorated, but the shop or office will not, because everyone has their own theme. Owners will generally rent-free for tenants for one month to decorate, of course, depending on the situation in the shop or office.

4. Water and electricity deposit or account transfer

The tenant’s responsibility includes decorating the premises and bearing all the bills, such as water, electricity and sewage (Indah Water).

PS: Sometimes the owner will require the water and electricity account to be registered in the name of the tenant for the tenant to manage his own bills. In addition, because the shop or office will use a large amount of water and electricity, once the tenant defaults on the utilities, the tenant will bear the expenses.

5. Owner’s responsibility

The owner’s responsibility is mainly to pay DBKL, house tax, land tax, maintenance fees, etc.

6. How much is the liquidated damages for early contract?

Generally, if the tenant trends the contract early, the compensation is usually a two-month deposit. Of course, it depends on each different lease contract.

7. Who is responsible if there is a fire during the lease?

The accident is borne by the tenant himself. The owner is only responsible for the storefront outside the burn, and the losses in the premises are not borne. It is suggested that if you rent a shop or office, remember to buy insurance for your cherished goods! 

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