A typical Tenancy Agreement should include the following:
1. Details
Names of Parties
Property to be leased
Rights of Parties
Date
Rent Review (Escalation Clause)
Service Charge
Deposit
-Deposit Clause (Deposit held by landlord till end of lease to off-set damages (not to offset rents) caused by tenant)
*Usually 1 to 3 months of rent
*Buyers buying with tenancy are bounded by all the covenants and no change is allowed
2. Minimum of 6 months Tenancy(Cannot be rented on daily or weekly basis)
3. No transient occupiers that create disturbances & inconveniences to neighbours for company lease.
2. Use of common areas
3. Legal Fees & Stamp Duty to be paid by tenant
4. Advertising and Promotion cost
5. Restriction on the use of the property
6. No alteration without consent
7. Operating hours
8. Insurance
9. Rent free period for renovations depending on the size of unit ranges from 1 week to 1 month
Property to be leased
Rights of Parties
Date
Premises
2. Habendum(Duration)
Start Date & Duration of Term
* Must not be less than 6 months
3. Reddendum(Money)
Rent Amount & Date of PaymentRent Review (Escalation Clause)
Service Charge
Deposit
-Deposit Clause (Deposit held by landlord till end of lease to off-set damages (not to offset rents) caused by tenant)
*Usually 1 to 3 months of rent
*Buyers buying with tenancy are bounded by all the covenants and no change is allowed
Novation Agreement (change of tenant)
A Novation Agreement is signed by the tenant with the landlord's consent to transfer the lease to another tenant, and no new deposit is paid to the landlord. It is a new agreement used to substitute the Tenancy Agreement of parties without the change of covenants in the Tenancy Agreement. No stamping is required and the out going tenant relinquishes his entire interest to the in coming tenant.Assignment Agreement (change of landlord)
A landlord is also able to transfer his reversionary interest to a 3rd party(Buyer) by signing an Assignment Agreement. The Assignment of lease to the incoming new owner/new landlord from the out going landlord, there will not be a need to sign new agreements and it can be done with written correspondences or a simple contract. Stamping is not required and the tenant's consent is needed for transfer of deposit from one landlord to another.Sub-let
With the Landlord's consent by signing a Subletting Agreement the tenant can sublet the premises. The main tenant continues to pay the landlord while the sub tenant pays the main tenant. It does not require the landlord to do anything other then giving approval for the sub-letting.Some URA Rules:
1. 10 Sqm per person and up to a maximum of 8 persons per private residential unit. *Not applicable for family members.2. Minimum of 6 months Tenancy(Cannot be rented on daily or weekly basis)
3. No transient occupiers that create disturbances & inconveniences to neighbours for company lease.
Retail lease
1. GST included in Rent2. Use of common areas
3. Legal Fees & Stamp Duty to be paid by tenant
4. Advertising and Promotion cost
5. Restriction on the use of the property
6. No alteration without consent
7. Operating hours
8. Insurance
9. Rent free period for renovations depending on the size of unit ranges from 1 week to 1 month
Still unsure? Check out a sample Tenancy Agreement
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