For negotiations to lead to harmony between owners and tenants, it is important that there is a fair balance between the interests of the parties. Each party should have as much information as possible about the other's intentions, expectations and needs in relation to the property.

Openness, in our opinion, is more likely to lead to harmony and a good working relationship between the owner and the tenant.

Parties need to ensure that there is certainty in their obligations and rights. If an owner has spent a large amount of money re-carpeting a large office space, the lease needs to ensure the length of the lease and the financial return to the owner. Likewise a tenant needs certainty as to term and his financial commitment.

If a tenant is faced with an increase in his financial commitment because a lease contains a discretion in favour of the owner, this is bound to cause friction. For instance, if a lease provides for a tenant to refurbish his premises to an owner's requirements, this will make the tenant's future more uncertain. The requirement for refurbishment tells the tenant that the owner wishes to have control over the tenant and the tenant's business. The uncertainty in the lease may well mean a large expenditure by the tenant as well a potential source for a dispute.

Our experience has been that insufficient time is taken to negotiate the tenancy details by owners and tenants. Both parties must be prepared to put some time into negotiations at a personal level.

Commercial people are very good at making deals and we have no doubt that if owners and tenants spent a little longer with one another, many legal expenses are avoided. Lawyers are often left to solve problems which could be easily solved by the parties. This costs both parties.

We urge you to take time with your tenants early in the negotiations and resolve as many potential problems as possible. The task is not nearly as difficult as many owners believe. This is even more important now that owners are not able to charge tenants the owner's legal costs.

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