You may be holding large commercial premise, which is bigger for your own commercial use. As you do not need such a huge space, which is taking toll to your financial budget, what course of action is available for you to minimize your expenses? You can allow an occupant to use a portion of the premise for business use and provide him with additional facilities and resources. In legal term, the person who provides the office space is known as Provider and person, whom such space is provided, is called an Occupant.
This type of occupancy is quite common in busy commercial districts, where renting a new office for small business purposes is very expensive. Such arrangement is beneficial to both Provider and Occupant. The provider earns rent and also reduces expenses on the premise and the Occupant gets the office in low rent, in compare to renting of new office in busy commercial district.
But, it is also necessary that Provider and Occupant should enter into legally valid Agreement to facilitate such arrangements. The Contract also bears provisions, terms & conditions, which are essential for smooth running of the arrangement and understanding rights and duties of either party. The Agreement is also legally binding on both parties and can be produced in the court for dispute settlements.
The Occupancy Agreement contains following provisions, along with numerous other clauses:
By signing the Agreement, both parties’ offers consent to written provisions, clauses, terms and conditions.
You can also download and print below given Occupancy Agreement for your own use.
Occupancy Agreement
THIS AGREEMENT made as of _____________Date of Agreement (ie. March 1, 2010)] between
__________________________[Name of Occupant] (the "Occupant") of___________________[Address of Occupant] and________________[Name of Provider] (the "Provider") of_______________________[Address of Provider].
WHEREAS:
(A) Provider is the owner of the premises municipally described as [Municipal Address of Entire Premises];
(B) Occupant desires to occupy and use a portion of such premises more particularly described as _________________________[Describe the Portion of the Premises to be used by Occupant]__________________________ (the “Premises”);
NOW THEREFORE in consideration of the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Provider hereby grants to Occupant, exclusive use of the Premises, together with non- exclusive use of all common areas currently occupied by Provider.
2. Provider also agrees to provide the following additional resources to Occupant:
(a) reasonable use of Provider’s boardrooms and meeting rooms on an as needed basis;
(b) use of the existing furniture located on the Premises;
(c) two telephone handsets one (1) located in the office, and the other handset located at the secretarial area together with access to the existing voice mail system;
(d) individual (DID) numbers allocated for each of the office, secretarial area and a fax outlet;
(e) allocation of space on the server for the purposes of networking the office and secretarial area; and
(f) Internet and email access.
3. Occupant will, at its own expense, have signage on the door off the lobby leading toward the Premises.
4. In consideration of the above-noted services, Occupant agrees to pay to Provider a monthly fee of __________________ [Monthly Fee (ie. $1,00.00)], payable in advance on the first day of each month.
5.Occupant agrees to reimburse Provider for all supplies and other resources of Provider consumed by Occupant, including but not limited to telephone and fax line charges online services, stationary, and similar items.
6. The term of this Agreement shall be for an initial period of ________________[Term in months (ie. 12)] months commencing_______________ [Commencement Date of Term] and thereafter shall be deemed to be automatically extended on a month to month basis with either party being entitled to terminate this Agreement on sixty (60) days prior written notice to the other.
7. This Agreement shall not be construed or interpreted as a lease or sublease of the Premises.
IN WITNESS WHEREOF the parties hereto have executed this agreement as of the date first written above
Witness____________________________
Name of Provider____________________