5 Things to keep in mind when making a factory lease you need to know
The need to expand production scale of enterprises in the current economic situation is increasing. But not all businesses have the ability to build a new factory. Therefore, many businesses have come to suppliers with warehouse rent rates near Ho Chi Minh City that are much more affordable than newly built or rented in HCMC. To complete the procedures for handing over the workshop, businesses are required to sign a contract. This contract has a very important legal value, should be read carefully. So what is the thing that businesses need to keep in mind when making a factory lease?
5 Terms of the factory lease agreement should be considered
# 1 Price
The selection of suburban suppliers with quite cheap warehouse prices near HCMC has made many businesses satisfied. However, if not careful, this price can "jump" more times. If negligence occurs, the enterprise itself will be the first disadvantaged. So make sure that the price set out in your factory lease is the same price you know.
Businesses should ask detailed questions about this price and ask to specify in the contract. With such, suppliers will not have the opportunity to cheat and profit from businesses. Enterprises can suggest some questions such as:
Does the factory rent include tax?
Is the rental fee included factory management fee or security fee?
Does the rental price include supporting services? What support services are there?
# 2 Contract term
Besides the factory rental price, the contract term is also very important. The contract expires, meaning that the lease time of the factories is over. This is the time when the legal binding between businesses and the rental unit expires. Therefore, it is necessary to carefully observe whether the contract term is in accordance with the agreement between the two parties before.
In case businesses want to extend the lease term of their factory, are there any incentives? Businesses should have detailed questions and calculate their own long distance. In the factory lease, there should be details on the contract extension in detail. If this is a good production environment and businesses are no longer used, it will be a shortcoming for businesses.
# 3 Method of payment in the factory lease
There are many forms of payment given for businesses when renting a workshop. It can be monthly, quarterly, annual or multi-year. The payment method may be provided by the enterprise or the lessor. This is also clearly shown in the contract, businesses need to pay attention.
Therefore, choosing a reputable supplier is not easy. At Kizuna - the rental unit of quality workshops is always clear and detailed with the warehouse rent near HCMC. All terms of payment method in the contract are detailed and complete. Businesses will not have to worry about the form of payment detrimental.
# 4 Prices change
Warehouse rental price near Ho Chi Minh City will fluctuate in certain stages. Each of the different stages of factory rent how much up and down will be clearly stated in the contract. Future rates will usually be estimated by the rental unit. Enterprises only need to read and refer to whether this price change is appropriate or not. If not suitable, businesses can discuss again to adjust more reasonable.
In addition, businesses need to note one more important point. Currently, there are many suppliers offering preferential industrial park workshops along with long-term factory leasing. Enterprises should ask for more details on this issue to get a more economical price for themselves.
# 5 Other arising issues
Besides the above problems, there are many problems that can arise. These issues will be carefully regulated in the contract of both parties. Often these problems would be:
- How will the lessee slow payment?
- The amount of compensation that either party must pay if unilaterally canceling the contract.
- The price of the accompanying services included in the contract.
- Responsibilities of both parties when damage occurs to equipment in the factory.
Signing a contract is a very important job when businesses choose to rent a factory. So make sure you read the sections carefully, especially those 5 above. In this way, the cooperation of enterprises with the new leasing units is legally guaranteed. If you have no more questions about the factory rental contract, businesses can sign and seal. Comes with the business license of both parties. The final step is to notarize with local authorities to ensure the interests of both parties.