Use a Written Contract and a Lawyer

Recently I have been involved in assisting several companies either lease or lease out their greenhouses.  A few years ago, I leased out our greenhouse, we used a Commercial Greenhouse Lease Agreement.  I had a lawyer, acting on my behalf, and likewise the grower, who was leasing our property, used their own Lawyer.  By having this structure and a written agreement in place, it was black and white and therefore no issues arose for either party. Both parties were satisfied with the outcome.  

The cost of using a lawyer, to prepare a commercial lease agreement, may deter growers using that process.  It would not surprise me if many growers do not have legal documents in place.   However, by using a lawyer you will minimise the risk of any disputes occurring.  It is probably not 100%, nothing is in life, but it certainly will give you a lot more certainty and clarity.

As with any agreement, at times the process can get stressful.  In some cases, it may not be straight forward, especially if there are continual amendments required by either party.   Every time you require an amendment the lawyer adds additional charges to their fee.  The cost may be anywhere from one to five thousand dollars, but I truly believe it will be money well spent.  Lawyers are there to protect all parties involved.  To date I have only ever had good experiences engaging with lawyers preparing Commercial Greenhouse Lease Agreements.  I strongly recommend this process. 

Leasing greenhouses is common, many owners and investors have gone down this path rather than sell the glasshouse, and why not? There are stable returns to be made with minimal risk if the process if done correctly.  Lease agreements may fetch, depending on the age and quality of the greenhouse and the chattels involved, anywhere between $10 – 20 per m2 annually.   If you ever require a personal evaluation, this is a service Grower2Grower offer.

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Article Written and compiled by Stefan Vogrincic, Consultant, Grower2Grower

Article Edited by Marie Vogrincic, Editor, Grower2Grower