Office Tenancy Agreement: The Essential Office Leasing Terms & Stages You Will Need to Know
When it comes to leasing an office, you could face a lot of bumps whilst embarking on that journey. Being able to weave through these obstacles is not only an important skill, but a necessity if you want good value for your office rental. One of the more important parts of the office leasing process is the Tenancy Agreement. We’ve laid out some important basic terms and details pertaining to the Tenancy Agreement below.
Use these helpful tips to master the contractual stage of your office leasing journey.
A standard office lease in Singapore is approximately 2-3 years. The lease will have additional details that cover your amount of floor-space available, your rights as a tenant, and your maintenance obligations. Before you sign a Lease, here are some key aspects to look out for, leading up to the Tenancy Agreement. This includes a few essential terms that you will have to face when renting an office space.
Letter of Intent (LOI)
A document which is not legally binding that describes the main terms and conditions to be agreed upon by both the Tenant and Landlord.
Once the Letter of Intent (LOI) is received by the Landlord, the Landlord will conduct a due diligence check on the prospect and its business activities. Usually, upon reaching a consensus between both the Landlord and the Tenant, a Letter of Offer (LOO) and a specimen copy of the Tenancy Agreement will be furnished to the Tenant to peruse.
Letter of Offer (LOO)
The Letter of Offer (LOO) is a legally binding document that further spells out more terms that are found in the Tenancy Agreement. Once the details are agreed between both parties, the Tenant will sign the LOO and proceed to make payments for certain items such as the Security Deposit.
As soon as the Letter of Offer and other associated fees are returned to the landlord, the finalized Tenancy Agreement will be issued.
Tenancy Agreement (TA)
After the LOO is signed, the landlord’s legal counsel will present the Tenancy Agreement to the Tenant, outlining the Terms and Conditions applicable to both parties (as stated in the LOO).
You are required to sign and return the duly signed tenancy Agreement to the landlord, alongside the required final payments.