A selection of frequently asked questions about lease agreements in Singapore
The two figures, namely "Rent" and "Service Charge" are broken down to show
- "Rent" payable for the premises and
- "Service Charge" associated with tenant's contribution toward the apportioned costs and expenses for services (like central air-conditioning) supplied in relation to or in respect of the Building (common areas and shared facilities like toilets, pantry etc.).
In most cases, rent will be maintained as per the agreed terms throughout the lease, while service charge may be revised anytime during the terms of lease whenever necessary.
The bane of redevelopment break clauses in office leases. What can tenants do to deal with them?