As a tenant in a warehousing space, you have to remember that you and the landlord have responsibilities to play. These responsibilities include those that pertain to the lease execution process as well as those that you need to do once you have occupied the warehouse. Here is a list of the duties that you must take note of.
Your duties in the drafting of the offer letter
This is the letter which is otherwise known as the letter of intent or LOI. This outlines the terms and conditions pertaining to the warehouse lease and comes first before the drafting and subsequent execution of the lease contract. During this stage, you will be asked to provide your financial information, usually including tax information for the past two to three years.
Pay the first month’s rent in advance
Entering into a warehouse lease will require you to pay the first month’s lease in advance. In some other cases, though, depending on the landlord, advanced payment can be required for several months. You have to check on this so as not to get confused with what is actually required in the contract.
You also have responsibilities when it comes to warehouse lease insurance
Warehouse lease insurance is a liability and typically, in such a clause, the landlord is included as an insured party to the agreement. You will be paying a higher insurance rate depending on the materials that go inside the building. For instance, you will be using hazardous materials. In this case, your liability will increase owing to the fact that you will be putting the warehouse space at a higher risk for disaster.
You also have specific maintenance and repair responsibilities
Typically, a warehouse lease contract will include clauses as to making sure the property will always be in good order. Alongside this, you can also find a specific provision where you will be required to repair the warehouse once it faces non-structural problems due to your fault or negligence. In this case, you have to take note too that there are things you cannot do and must do on the rented space.
You cannot destroy the property intentionally or in any extremely careless manner. Never rip out the walls of the space or any fixture for that matter without asking the landlord’s permission. Also, you should never accumulate garbage on the space. In addition to this, you should never compromise the enjoyment of all other tenants in the space. When you neglect this, there is a high chance that the other tenant will file a complaint against you that can even result to you being sent out of the space.
Together with these don’ts are the things you must do to the property you are renting. Always keep non-structural elements of the space in good shape at all times. It is your responsibility to keep the space clean and to repair anything that needs to be repaired during your stay at these premises. You must replace any lighting and repair all other fixtures or even wall coverings that need repair. Depending on the lease agreement, there may be other responsibilities your landlord will expect from you during your contract with him.
You are not expected to work on the space’s structural aspects
These include the building itself or the major building systems like electrical, roof, heating, foundation and ventilation systems. Well, many times the landlord takes full responsibility for the repair and maintenance of these systems because they do not want tenants making decisions as to these structural aspects of the building.
All other responsibilities may be changed depending on your contract
Together with the landlord, you can agree to include other crucial things in the list of responsibilities he should expect from you as the tenant. He can always say that you take charge of repairs pertaining to electrical switches and when you agree to that part of the clause then you are by all means expected to be responsible for such duties. In like manner, you can request the landlord to provide you with other services like those involving handyman and janitorial work. But when you do request for such make sure you know how much you are expected to pay for the endeavour.
In all of these responsibilities, you have to make sure that the warehouse lease contract has specific stipulations that will enumerate all the duties expected of you as a tenant. You should always sit down with the landlord, together with an expert who can help you make the final decision. Never sign the agreement unless you know your duties and you are ready to take on the job expected of you as the tenant.
Once you are familiar with your duties and responsibilities as a tenant, you can now enjoy your warehouse space for lease in Toronto. If there is anything you are in doubt about, please feel free to ask us!