THE FOOD FACTORY RENTING GUIDE
Step 1 - Source for the RIGHT Food Factory
Choosing a food factory is critical for your business operations. You can search for a food factory from property portals, advertisements or engage an agent to assist you in your search for the food factory.
Do always take note of the specifications on the food factory other than rental price, location, specifications are equally important or it will be detrimental to your business. Do check with the owners, food professional or a well verse property consultant on these matters before leasing the property.
Step 2 - Letter of Intent / Expression of Interest
When you had decided on the food factory you wish to lease, a letter of intent or expression of interest indicating the tenant’s company name, rental price (do take note whether rent include or exclude maintenance fee), lease tenure (generally 2 or 3 year lease), date of possession, rent free, lease commencement date, security deposit and any other additional request will be submitted to the landlord for their consideration together with a 1 month deposit.
Step 3 - Negotiation
Negotiation is a science as well as an art. As important as choosing the correct factory, the rental price must be justifiable based on recent market transactions as well as the internal fixtures and condition of the food factory. A sound research and analysis of the food factories within the development and the vicinity will assist you to rent a food factory at a reasonable rental price.
Step 4 - Tenancy Agreement
Once the general terms and conditions had been agreed by both landlord and tenant and the LOI has been accepted by the landlord, a lease agreement will be prepared to make the rental transaction binding.The tenancy agreement will spell out the obligations of both landlord and tenant. Upon signing the tenancy agreement, the security deposit will have to be paid to the landlord and the tenant is also required to pay the stamp duty to IRAS.
Step 5 - Date of Possession
Prior to the handing over of the unit on the date of possession, a thorough check should be done to ensure that the unit is handed over in a manner which is acceptable by the tenant. Should the unit comes fitted, do check the condition of the fixtures to ensure that it is in working condition.