Congratulations! Your business is
expanding or you are on the lookout for office space for your new venture. You
are busy setting up the business model and hiring employees. You could not be
bothered with mundane activities such as drawing up your lease or dissecting
the clauses incorporated into the same.
Fortunately, being vigilant about
your rental agreement can save you an immeasurable headache later on. In this
blog, we will discuss one of the most common thorns on the side of most
commercial renters – the break clause.
What is a break clause?
A break clause enables a tenant
to terminate the lease before its expiry. With the growing uncertainty of
modern business, more and more entrepreneurs are eager to include this option
in order to check their losses when renting commercial property.
Unfortunately, many landlords
affect strenuous conditions on the break clause that impose severe restrictions
on any tenant who try to avail it.
How do break clauses adversely affect the tenants?
Often, tenants agree to higher
rent or a shorter notice period as part of the break clause. These conditions
then become sacrosanct and more often than not, landlords refuse to recognise
break notices if these conditions are not fulfilled to a T.
Sadly, many tenants fail to win
litigations against their landlords because of these conditional break clauses.
The conditions often include vacant possession, rent payment or property
maintenance.
How can you escape break clauses?
Most tenants accept conditional
break clauses because they fail to grasp the simple concept that all such
conditions are rendered unnecessary by a separate clause that is a part of
every lease and says that tenants cannot breach any part of the contract at the
time of termination.
So, the next time you are renting
commercial offices in West Sussex, Gatwick or Crawley, do
not accept any conditional break clauses in your lease agreement. Instead, make
sure that a break clause is incorporated into the contract using the simplest
of words without any conditions. Alternatively, you can also seek the
assistance of commercial property
consultants.



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