When you find the ideal commercial property, you could find that you are in such a hurry to secure the property with the landlord that you may overshadow the terms and conditions of the lease. To help you address the key points, here is a quick guide to a commercial property lease.
>Firstly you need to check you are getting the space that is advertised. You can hire companies to check that you are getting the size of the commercial space, such as Building Owners and Managers Association. It is worth double checking because if the space differs in size, you could use it when negotiating with the landlord. Also it is vital to check that you can use the property for what you require, for instance if you need to use it in evenings and weekends, is this stated in the lease?
Next you should consider the lease commencement date as it could potentially hinder your business launch, if the landlord is having building work done on the property and they are running behind schedule. You should discuss this with the landlord prior to signing and also look into protection for such incidents. Subsequently you should look into the termination of the lease, can the landlord cease the lease early without reason? Or if your circumstances change, how difficult and costly would it be the end the lease yourself?
A main focus when signing a lease should be the rent increases. You should ideally arrange for a professional solicitor to look at the lease for you as you will probably miss important clauses which could cost you more money in the end. Are there any late fees for rent, if there is a rise in taxes, would this be passed onto you, the tenant? Are all points that need to be considered.
Finally you should consider if the building needs some repairs, would you pay for those and claim them back from the landlord. If so, could you afford to do that? Also check what would happen if the landlord sells the building, would your lease terminate with the sale or is it transferred to the new landlord?
The best advice is to check and double check the lease and make sure you are not rushed into signing, even if the property is perfect for your business. It is definitely worth taking the time and money to draft in a professional to unleash the hidden cracks.
