Lease - The length of the lease period (typically 2 or 3 years) is indicated in the Tenancy Agreement with the commencement date stated.
Lessee - The lessee is the subject that leases the premises and is often known as the ‘tenant’. Upon expiry of the lease, the ‘interest’ is returned back to the lessor.
Lessor - The lessor owns the premises and is often known as the ‘landlord’.
Legal Fees - The incoming Tenant is usually responsible for both their own and the Landlord’s legal costs in preparation of the lease documentations.
Option to Renew - Tenants are usually given an option to renew their lease at a mutually agreed rent prior to the expiry of the lease.
Reinstatement - All Tenants are required to put the premises back into their original state (fair wear and tear excepted) at the termination of their lease.
Rent-Free Fit-Out Period - Given by Landlord as an incentive to Tenant for renovating the units. This will depend upon the size of the premises and is normally one month.
Stamp Duty - It’s statutory tax payable as stipulated by the Inland Revenue Authority of Singapore (IRAS). The stamp duty is levied on the gross rental payable for the period of the lease inclusive of service, maintenance, advertising and promotion, furniture/fittings charges and any other charges excluding GST.
Security Deposit - A deposit that is held by the Landlord (usually 3-6 months rental) and is refunded to the Tenant at the expiry of the lease subject to the conditions in the Tenancy Agreement.