When renting a shop, it’s common to pay a deposit, and the contract clearly outlines the obligations and rights between the landlord and tenant. This deposit serves as a security, assuring the landlord that you will adhere to the terms and conditions of the lease.
However, many people often just skim through the lease when signing, without paying much attention. In the end, when it’s time to terminate the contract, they may lose their deposit because they didn’t carefully read the terms and conditions.
So today, I’ve compiled 5 essential lease terms and conditions that you must carefully review to avoid the risk of forfeiting your deposit.
1. Deposit Terms
In this section, the circumstances under which the deposit may be deducted are usually outlined. It also specifies the number of days within which the landlord is obligated to refund the remaining deposit.
2. Sublet Terms
Subletting is often not allowed. If the landlord discovers that you have sublet the premises, even if it’s just a portion, they have the right to forfeit your deposit and terminate the lease. Therefore, if you genuinely need to share the rent with someone, make sure to obtain the landlord’s approval first and document it in writing.
3. Shop Restoration Conditions
Often, landlords may require tenants to restore or empty the shop. If the landlord finds that the interior has not been cleaned or the renovation debris hasn’t been cleared, they have the right to deduct the cleaning expenses from your deposit.
4. Early Termination
If a tenant terminates the lease early, landlords usually forfeit the deposit. However, some leases stipulate that even if the deposit is forfeited, the landlord still has the right to pursue the rent for the remaining tenancy period! So, this is a crucial point to pay attention to when signing the contract!
5. Schedule Page
This is the key summary of your lease, clearly stating the identities of the landlord and tenant. It will also explicitly list the deposit you’ve paid, the lease start and end dates, renewal terms, renovation periods, and more. Before signing, make sure to check and verify all the details!
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