Costs for lessees other than rent

Costs payable by lessees at start of lease

Upon execution of the lease, the lessee has to pay its half share of the stamp duty and registration fee (if applicable, i.e., for a lease exceeding 3 years or otherwise having an option to renew) payable. Typically, the lessee also needs to pay the fitting-out cost (if required by the term of the lease), the deposit, and management charges and rental for the beginning month of the lease term in advance.

Maintenance and repairs

The maintenance and repair costs of the common areas are generally covered by the management charges. The burden to pay such management charges is open for negotiation between the parties.

For areas that are occupied by the lessees, the lessees are responsible for the maintenance and repair costs (unless for structural repair which is normally the obligation of the lessors).

Utilities and telecommunications

Such services are usually subscribed by lessees directly with third-party suppliers.


Lessees typically pay a proportion of the premium for insuring the building. This amount is determined by the size of the premises occupied by the lessee compared to the total rentable space of the building. It is also typical for a lessor to require the lessee to purchase a comprehensive insurance for insuring the premises itself and provide evidence of premium payment at the request of the lessor.

If you have any questions or comments about this report, please get in touch.

Attorney Advertising Material © Withersworldwide - The information and opinions contained in this publication do not constitute professional advice