by Mr. Om Ahuja, CEO –
Residential Services, JLL India
The
most important advantage that a corporate lease offers over a personal lease
lies is the vastly enhanced safety factor. The possibility of fraudulent
activity of any kind in a corporate lease is minimal, since the corporate
assumes complete responsibility for the occupant. The rent comes in on time,
and the owner stands a very high chance of getting another occupant from the
same company immediately on the expiry of the lease period.
A
corporate lease arrangement makes sense for property owners who value the
comfort and high security level of tenants whose financial soundness is
vouchsafed to the highest possible degree. They are also ideal for owners who
seek the sustained cash-flow assured by long-term leases, since corporate
leases are generally signed for either 24 or / 36 months.
The
primary difference between leasing out a property to a corporate rather than to
an individual lies in the fact that a corporate lease equals assured and
hassle-free rental income flows. This is by no means a given in the case of a
personal lease arrangement. Secondly, there is considerable scope for
negotiation, since most landlords are willing to be flexible when it comes to
landing a company lease.
The
process of leasing out a property to a corporate is same as in a personal
lease. The agreement must be signed and registered in court, and once the
advance rent and security deposit are paid by the company, the designated
occupant takes possession of the property.
While
discussing a corporate lease arrangement with a company, the property owner
should ensure that he can negotiate for a minimum lock-in period. Also, while
the company would expect to be allowed to designate another employee as
occupant if the current tenant is transferred, this should not happen without
the written consent of the owner.
Company
lease and personal lease agreements are almost identical, with the main
difference being that in a company lease agreement, it is not necessary to
mention the name of the occupant. Instead, the company's name will appear as
the lessee. With regards to the collection of monthly dues, the usual
arrangement in a corporate lease is that the
rent is transferred into the landlord's account by the 7th of every
month.
Mr.
Arun Chitnis
Head
– Corporate Communications & Media Relations
JLL
India
Level
6, Amar Avinash Corporate Plaza
Bund
Garden Road,
Pune
411001.
Tel:
(020) 30930441 Fax: (020) 40196101
Mob:
+91 9657129999
Website:
www.joneslanglasalle.co.in
Blog:
www.joneslanglasalleblog.com/realestatecompass
Twitter:
JLLIndia_Realty
