Buying property with corporate lease

[mm63]

Hi,

I am thinking of buying a private property with a corporate lease already running and have the following questions:

1. There seems to be a premium placed on corporate lease. I suppose a company is less likely to run away and will most probably pay rent on time. Any disadvantages?

2. As the corporate lease is in effect, how is the rental agreement transferred to me? Do I need to draw up a new agreement, pay stamp duty and pay agent fees?

Thanks in advance!

[Douk]

Hi,

I am thinking of buying a private property with a corporate lease already running and have the following questions:

1. There seems to be a premium placed on corporate lease. I suppose a company is less likely to run away and will most probably pay rent on time. Any disadvantages?

2. As the corporate lease is in effect, how is the rental agreement transferred to me? Do I need to draw up a new agreement, pay stamp duty and pay agent fees?

Thanks in advance!

I did not sign a new agreement with the corporate tenant..i only re-sign the agreement for extension when lease expires. Stamp duty can be done at IRAS, without agent..

[blackfire]

Hi,

I am thinking of buying a private property with a corporate lease already running and have the following questions:

1. There seems to be a premium placed on corporate lease. I suppose a company is less likely to run away and will most probably pay rent on time. Any disadvantages?

2. As the corporate lease is in effect, how is the rental agreement transferred to me? Do I need to draw up a new agreement, pay stamp duty and pay agent fees?

Thanks in advance!

Corporate lease may not be necessary better. It depends. I once had a corporate lease from a parallel car importer and had problems collecting rents. Good corporate leases are from banks, MNCs or large listed companies, SMEs are not a safe bet.

[vip]

I prefer corporate lease from MNCs because:

1) Better tenant profile, save my (or my property agent's) time for background check of individuals;

2) Less chance of tenant skipping/postponing rental payments;

3) The HR/facility person usually follow usual practice and contract terms; and

4) If tenant exercises diplomatic clause before end of contract, company most likely pay penalty.

But take note of the following:

1) Company can ask another expat to stay if your tenant is repatriated (especially if your lease is in company's name, not tenant's name);

2) Expect delay if rental payments are through TT overseas. Best to ask company to do bank auto transfer.

For transfer of ownership, your lawyer will handle both the sale and the rental part (inform tenant, communicate payment details, etc.)

[proud owner]

Corporate lease may not be necessary better. It depends. I once had a corporate lease from a parallel car importer and had problems collecting rents. Good corporate leases are from banks, MNCs or large listed companies, SMEs are not a safe bet.

every class of tenants has its rotten eggs

i have friends who rented out to bankers .. they lost their job, packed and moved out without telling landlord .. and called landlord only when at airport before boarding plane ..

i have friend who rented unit to people working in emabssy ..but not the 'ambassador' .. also just moved out as they wish, when they want bigger unit ...

i have friend who rented unit to decent looking family (couple) who actually sublet the whole unit to 'chickens'