Residential or commercial lease? Start with the right questions

Start with how the unit will be used

The first question is how the property will actually be used. A building description or the tenant's name does not explain every detail of a lease request. Describe the intended use and flag situations that need review, such as an organisation renting accommodation for employees or a property with several uses.

Ejar provides separate services for residential and commercial leases. Review the appropriate route before preparing a draft. Avoid copying an earlier lease simply because the parties or address have stayed the same.

For a home, clarify everyday use

When letting an apartment, villa or residential floor, discuss the details that will matter throughout occupancy. Which areas are included? Is there parking, storage or furniture? How will meters be recorded and keys handed over? These details make the draft easier to check.

Prepare a record of the unit's condition and equipment before handover. Dated photographs and an agreed description help establish a shared starting point, but they do not replace reading the lease and setting out responsibilities.

• The unit's boundaries and any associated facilities.
• Furniture, equipment and meter readings at handover.
• Maintenance reporting and practical contact arrangements.

Explore: Using the rental index: a property owner’s comparison guide

For business premises, discuss operations early

Offices, shops and warehouses raise operational questions about fit-out work, signage, site access, shared services and the condition expected on return. Write these questions down before agreeing the financial terms. Fit-out costs and the timing of access may affect your decision.

Check activity and location requirements with the relevant authority before committing to major works. Do not assume that signing a commercial lease automatically approves every activity, alteration or subletting arrangement. Ask for a review of the applicable documents and conditions.

Compare responsibilities as well as the headline price

For either route, compare the term, instalments, services and maintenance arrangements. When considering several offers, use one table to record the price, inclusions, handover date and unanswered questions. This helps prevent a small but important detail being lost behind an attractive figure.

Ask about charges and any tax treatment relevant to your circumstances rather than relying on another property's experience. Review renewal requirements for the particular city and lease instead of assuming every case follows the same process.

Give a precise description in your enquiry

Include the city, unit type, intended use, tenant's capacity and proposed lease term. If the correct contract type is unclear, say so. Describing the situation first is more useful than choosing a route purely on price.