Your business has been going from strength to strength over the years and you’re looking to keep expanding. One of your main priorities is to find a new location to trade out of. You’ve looked into buying a piece of commercial real estate, but it just doesn’t make sense at the moment. You’ve settled on looking for a property that is available to rent.
A commercial lease can bring your many benefits, but there are also drawbacks. The lease agreement that you sign plays a key role in just how beneficial the property will be for you. Outlined below are some of the most important factors to consider before making any decisions.
Who is responsible for repairs?
Ideally, you want a space that doesn’t require too much work before you can start trading. If the building is new and in good condition, then this may be a good sign. But what will happen if something goes wrong, such as roof damage, a leak, electrical issues, etc?
Such problems could mean that you have to cease trading, so it’s vital that you get them resolved quickly. Who will pick up the final bill? Who is responsible for the upkeep costs at the site? This is something that you want to be clear in writing before signing any agreements.
Are you secure?
The commercial lease should also contain provisions that relate to the term of the tenancy. Do you have security for several years? Is the lease only short-term? Can you leave if it doesn’t work out? Can you be asked to vacate the premises without notice? Stability is important for you and your employees, and you need to make sure that the commercial lease agreement provides this.
Disputes over commercial leases can be costly and time-consuming. Before making a deal, it will be beneficial to seek some legal guidance.