fit out period clause in tenancy agreement

In a tenancy agreement for commercial or industrial properties in Singapore, the fit-out period clause is a common provision that allows tenants a period of time to renovate and customize the premises without paying rent. Here are some key points about this clause:

Duration

The fit-out period can vary but is typically between 1 to 3 months, although it can be longer for larger units or those requiring extensive renovations, such as F&B units or industrial spaces like warehouses or factories.

Purpose

This period is intended for the tenant to conduct fitting-out or renovation works to make the premises suitable for their specific use. This includes any necessary electrical, plumbing, and other installations.

Mutual Agreement

The length of the fit-out period is usually determined by mutual agreement between the landlord and the tenant, taking into account the size of the property and the scope of the renovation works required.

Conditions

During the fit-out period, the landlord typically does not charge rent, but the tenant may still be responsible for other costs such as utilities, management fees, and central chilled water charges. The landlord may also be required to provide basic services like electricity to facilitate the renovation works.

Approval

The tenant usually needs to submit a detailed plan of the renovation works to the landlord for approval, which must comply with the relevant rules and regulations of the building or property.

Reinstatement

At the end of the lease, tenants are often required to reinstate the premises to their original condition, which can include removing any fittings or renovations made during the tenancy.

Financial Relief

The fit-out period provides financial relief to tenants by allowing them to undertake necessary renovations without the immediate burden of rent payments, helping them to customize the space according to their needs.