Agreement signing

When negotiating terms of the contract, tenants usually hear that the content of the contract is standard and there have never been any unclear situations or objections. In that case, what should you pay attention to before signing the agreement?

Rent object

The agreement defines, among others, the area, location or number of the land and mortgage register. When only part of a given property is rented, its size should be given in square metres, or individual rooms for rent should be indicated. Both parties to the agreement must remember to determine the area which is the rent object.

Rent period

Important information that should be included in the agreement is the rent period. The provisions precisely define the start and end time. It is necessary to pay attention to whether this section contains information as to when the tenant is obliged to take a decision on extending the agreement before it expires. The rent period affects other contractual provisions, such as the rent amount. More negotiating opportunities arise when a company plans to stay longer in one location.

Rent amount

The tenant is obliged to pay a specific rent. Its amount depends on:

• Facility location
• Size of the rented area
• Type (standard) of the building (BTS, production facility or other)
• Agreement term
• Arrangements during negotiations

If the rent is not payable in the Polish currency, the agreement should include a provision concerning the conversion of amounts.

In particular, pay attention to the day the month the rent is to be paid and the consequences of the delay in payment!!!

Maintenance fees and additional costs

Maintenance fees include all services related to the maintenance of the storage facility and common areas of the park, i.e. protection, snow removal, cleaning. Apart from rent and maintenance fees, the tenant also covers utilities (water, electricity, telecommunications).

Room finishing, construction modifications and additional installations

The provisions of the agreement indicate to what extent and on what conditions the tenant may carry out alteration or changes to the installation and systems. They also include additional information that the landlord has the right to carry out repairs and construction modifications, without which it is impossible to properly operate the building.

Insurance

It is important to pay attention to the insurance that must be held by the property owner and by the tenants. The most frequent provisions include:

• The landlord undertakes to insure the rent object against fire, storm and flood at its own expense.
• Movables owned by the tenant and brought by them to the rent object will be insured by the tenant at their own expense.

Summary

The above-mentioned issues are the most important provisions of the rental agreement. One should bear in mind that renting a warehouse is a decision taken for many years and we have to approach this subject very carefully. The agreement formulated in the correct way will enable functional and safe use of warehouse space.