Critical Issues to Consider Before Leasing Commercial Property for Your Business
Leasing a commercial property for an office or retail enterprise is an essential step in business. The lease agreement plays a critical role in determining the success of your business. If you sign a lease with numerous legal restrictions and terms that favour the landlord, you may have as well agreed to an enslaving agreement that may paralyze the business. That is why it is critical to take your time in understanding leases before settling for commercial property and putting down your signature on the contract. In this light, this article will teach you some of the key issues that you should consider before signing a commercial lease for your business.
Get a lease that fits your business
Your business needs should always come first when finding the ideal premises for your operations. For this reason, take the time to understand the lease terms and ensure that they fit your business. In this light, do not go for long-term leases that bind you to the space for five or ten years. If your business' needs change, you will be forced to compromise until the end of the lease term. Instead, choose short-term renewable leases that last a year or two. This way, if you get a better option or the company grows, you can quickly move to another space without legal restrictions.
Think about modifications
Before signing a lease contract, think about any changes that you may want to make to the space to ensure efficiency in business. For example, you may want to add cubicles, rewire the facility, add a loading dock, and make other adjustments to the space. You may also want to put a large sign that potential customers can see from a distance. Ensure that the agreement does not forbid these changes. Look into any restrictions on building alterations that may affect the business in future and negotiate with the landlord before signing the contract.
The cost of the lease is an essential factor to consider. Besides assessing whether you can afford the rent, there are other key things to have in mind. For example, what does the rent include besides the cost of leasing the building? Does it cover insurance, maintenance costs, and taxes? Ask about such things to avoid legal issues down the road. Also, if the charges are not included, make sure that you are getting a good deal on the rental price so that you can cover the excluded costs.
Leasing commercial property is not an easy task, and there is a lot of legal jargon involved. Consider working with a property lawyer so that they can walk you through the process and ensure that your interests are taken care of in the agreement.