A lease contract in India is basically an agreement between a landlord and a tenant that declares what the tenant has to pay monthly for rent and its duration. Lease agreements tend to overwhelm some thanks to the complicated jargon used that can be intimidating. However, if people can have a basic understanding of what is generally included in a lease agreement India, it can help them avert unnecessary complications or additional expenditures during or after their lease is expired.
Critical lease dates in lease agreements are embedded in them. But a lot of people end up missing it which can often result in major financial consequences.
What are Critical Lease Dates?
Critical lease dates are essentially points in time within a commercial lease where the tenant or the landlord needs to complete something by a particular date. For instance, a critical date is observed in an option to renew the lease clause, which provides the tenant with the right and opportunity to renew their lease.
The critical date is basically the tenant needs to give notice to the landlord of their intention to renew the lease. If the tenant misses this date, they will forfeit their right to renew the lease. The Notice Date is regarded as a critical date. Missing it will no doubt impact the tenant’s rights under its lease.
Additional Critical Dates You Need to Be Mindful Of:
- Notice of Tenant’s Right to Expand its Lease Space
- Notice of Tenant’s Right to Downsize its Lease Space
- Tenant’s Right to Terminate the Lease
When a tenant has one or more of these rights covered in their commercial leases, there will surely be a date by which the tenant will have to deliver the landlord with notice of their intent to make use of each of their rights. If they are unable to do so, the tenants will end up losing the right and it will become null and void.
Why Do Businesses Tend to Overlook Critical Lease Dates?
Since businesses are focused on their day-to-day operations, a number of owners and managers tend to miss the critical lease dates specified in lease contracts. In the majority of the cases, they have to be reminded that the lease will expire in a couple of months, and they decide if they wish to extend the lease or relocate to another commercial space that will be better suited for their business.
Quite often, the manager or the owner will assess the lease agreement and learn they have missed a critical date where they were supposed to deliver the notice of their intent to renew the lease. Unfortunately, out of sight is out of mind. This is one of the reasons why companies end up missing out on critical lease dates that ultimately impact their bottom line.
Why is it Significant for Businesses to Opt for Lease Management Software?
This is why it is important for there to be a system where there are regular reminders of the critical lease dates so nothing is missed and you can attend to them when they should be addressed.
This is where the CRE Lease Matrix platform enters the picture. It is a robust and comprehensive lease management software in India that offers regular and consistent reminders and notifications for critical lease dates. In this way, businesses don’t need to miss out on them and can address them in a timely manner.
So what are you waiting for? Subscribe to CRE Lease Matrix now!
To know more, visit our website www.creleasematrix.com now.