5 Notes when ending, renewing, and transferring office lease contracts

In business, the termination or transfer of office lease contracts, renewal of office lease contracts are not uncommon problems. Any business or organization wishes to limit the movement and change of office address. However, because of the nature of the work and the development of the business, the demand for space is not enough, the need to expand the scale as well as many other factors cause the business to end or transfer the office lease contract ahead of schedule. The transfer not only consumes a lot of time, but copper will lead to many problems if the business does not understand the terms of the contract. Therefore, before ending or transferring, it is necessary to consider and check carefully to avoid unnecessary risks.

1. Notify the lessor before the end of the contract

There are two types of contracts that are terminated before the term and after the term. Normally, whether to continue to renew an office lease or not depends on the needs and decisions of the lessee. Therefore, the enterprise should notify the building manager at least 30 days in advance if it wants to terminate the contract. At the same time, note the date of receiving the deposit back, in what form. The same office equipment when handing over to the lessor includes what (air conditioner, light bulb, photocopier, printer, fax machine, refrigerator, furniture,...), status use is still warranted or not. At the same time, businesses should carry out the handover process on time, in case the handover has to pay extra.

2. Understand the terms of changes if signing a new contract (in case the lease needs to be renewed)

If the business intends to stay, continue to rent an office instead of moving to another place, it is necessary to read clearly the adjustments in the renewal contract. Especially the new terms and changes. A few details to note include:

• Percentage of price increase in the following and subsequent years

• Change the accompanying equipment system and facilities

• Are there any incentives for long-term tenants, contract renewals or not?

• Price of each service cost: parking fee, electricity, water bill, overtime fee, wifi fee, parking fee,...

• Duties and powers of both parties

• And other special changes

In addition, when signing an extension contract, you should express your wishes and give your opinion. Proposing necessary changes in the hope that the management will respond to ensure the operation of the business.

3. Learn about the business you want to transfer  

For businesses that need to transfer office lease contracts, it is extremely important to verify and understand the information of the business that needs to sublease the office. This will help ensure the interests of both parties, and at the same time help businesses need to transfer to avoid other fraudsters. Request the sub lessee to provide full information and business papers as well as ensure a long term of use with the landlord. At the same time, share the reason that the business you want to transfer specifically to build trust and credibility. From there go to negotiations, negotiate terms, regulations and obligations between the two parties in the most clear way.

4. There is a third party witness when transferring office lease contract  

In the process of transferring and signing the contract, to be more sure, you should invite a third party - the building owner to testify. The more detailed and careful the transfer contract, the better, this will help the business avoid conflicts arising after leaving. Check that the transfer office is correct with the papers, the assets in the declaration of the transfer contract are still intact, complete and in good working order. It also includes the house deposit, payment method and time, how to deal with breach of contract,... The signing, handing over and transfer of office lease contracts must take place in the presence of witnesses of the building owner to better ensure the legal value for the parties.

Currently, most office buildings for lease have support for "reselling offices" - assisting in finding new customers and subletting them to replace existing customers while the contract period is still valid. Customers will lose their deposit if the contract is terminated before the signed time, but reselling the office is one of the services to help businesses limit risks when they want to end the lease before the term.

Completely hand over new customers (customers receiving lease contracts) to the lessor. In order to limit risks and legally end liability, the transferor and transferee need to arrange a meeting directly with the lessor. The working session should clarify issues of rights and obligations of the parties to ensure that the rights and responsibilities of the parties have been understood and properly implemented in the next time.

5. Choose a reputable unit for long-term cooperation

Whether operating in any field or choosing a business model, businesses should prioritize choosing reputable rental units. The professionalism in the way of working is the foundation for mutual development and long-term cooperation. At the same time, during operation, if you encounter problems or problems, they will enthusiastically support and suggest the most optimal solution. The same goes for the transfer, they will be comfortable and ready to help, without putting pressure and pressure on your business. Not only that, it also creates opportunities and conditions to support the transfer process to take place more quickly and smoothly.

Here are some notes to make the transfer of an office lease easier. Hope the article has answered questions as well as helped businesses in terminating or transferring contracts