When you’re starting a business, one of the main expenses is a commercial space.
If you don’t want to commit to purchasing commercial property, then leasing is your best option. What some business owners don’t realize is what’s not in the lease is just as important as what is.
Know the main details
When considering a lease, make sure you have the basics covered. Know how long the lease will last, whether the rent is locked in or if it will fluctuate, and whether you can expand to rent more of the property if you need it.
These are three very important details you need to know before signing a lease. The ability to budget for a certain amount of rent and for how long can help you create a dependable business plan.
Check for specifics
A good lease should carefully outline specific details. Things like what kind of lease it is, who’s responsible for upkeep and out clauses are important aspects.
If your business needs to move, expand or downsize, it’s important to know you have that option available. It can also be useful to look for a landlord who will offer a “cure period”, or a length of time before the landlord defaults you.
You should know if your business requires a sudden influx of capital, the landlord won’t evict you the next day for missing a rent payment.
Compare your options
Unless you are pressed for time, it makes sense to look over a couple different commercial leases. If you find a spot that seems perfect but is asking for a long-term commitment, it may not be the right fit. Likewise, if you have found a property you like but it comes with a vague lease, it’s probably not worth the risk.
Signing a commercial lease is one of the most important steps in a business’s growth. You will be relying on the space to not only handle customers but also be able to grow and expand your business. The wrong lease can leave an owner feeling trapped. It can sap valuable resources away from a business.
If you have any questions around commercial leases, a knowledgeable business attorney can advise you.