The Difference Between Lease and Tenancy: What You Need to Know
Whether you’re searching for an office for your new business or planning to move to a bigger space for your growing company, you’ll most likely have a list of tasks to tackle. Finding tenant representation experts who can help you with your search by browsing through websites listing commercial properties and looking for commercial movers who will transfer your furniture and equipment to the new office are just some of the things that might be on your To-Do list.
But, no matter how busy you are, you should remember to do one thing: learn the difference between lease and tenancy. Which are often used interchangeably but aren’t the same! Knowing more about these terms is essential since it helps you ensure that you’ll find the ideal office for your business and get your money’s worth. A trusted tenant representation company can provide valuable insights into these two options and help you decide which one is better for you.
Lease and Tenancy: What’s the Difference?
Both leases and tenancies give you the right to occupy a property for a certain period of time and for a certain rental amount. Look at lease agreements and tenancy agreements. You’ll see that both contain similar information, such as the rental amount and terms of payment and the improvements the tenant is allowed to make to the property.
However, leases and tenancies differ in the length of the rental arrangement. Typically, tenancies allow you to rent a commercial property for a certain number of months. On the other hand, leases require you to commit to a rental agreement for several years. They both provide different benefits to the table, so it’s essential to look into each option with the help of tenant representation specialists and find out which one suits your business’s real estate needs and budget.
The Benefits That Tenancies Can Bring
Since tenancies bind you to the property for a short period of time, it gives you the option to move to another location without any legal or financial ramifications. This is why tenant representation experts often recommend it for business owners who are starting out and want to avoid committing to a long-term lease in case their startup doesn’t progress as favorably as they wish. It’s also ideal for entrepreneurs who want the flexibility to move to a cheaper, bigger, or smaller office without worrying about the ramifications of breaking a lengthy lease.
Reasons to Opt for a Commercial Lease
Ask any tenant representation company, and they’ll tell you that the most significant benefit of leasing is the stability that it provides. In many cases, the rental cost of commercial leases is set in stone. This means that you know how much your monthly rental amount will be and can easily factor it into your budget. This will make budgeting much more manageable and give you more financial freedom to explore new opportunities for your business.
Having a commercial lease will also give you one less thing to worry about. As long as you’re able to cover your monthly rent and you follow your lease agreement to the letter, you won’t have to fret about being kicked out of your rental space, and you can focus your energy on growing your business.
Get in Touch with Us
Need more info about leases and tenancies? Reach out to PA Commercial, LLC! We provide top-notch tenant representation services and more. We can help you find the best possible commercial space for your company. Call Levi Smith at PA Commercial today!