When growing or starting a business, the workspace is usually a challenge. This is because the workspace you choose will also affect your business a lot.Therefore, you must be careful when selecting the commercial space to lease for your business.
When signing a lease for new commercial property to start or grow your business, you must apply caution to avoid entering traps. You must be very cautious and committed, and when necessary trust real estate companies such as Arizona real estate and property management for such transactions. Below we discuss some of the things you should know before signing a commercial lease:
1. Is your legal team contented?
Before signing any commercial lease, you must make sure your commercial property solicitor is comfortable with each and every phrase of the contract.
Commercial law is complex, meaning that you alone can not read and understand all phrases in that commercial lease. Only your commercial property lawyer should give you the green light to sign the lease after he/she is comfortable with every clause.
2. The lease states the final deal.
You should always remember that every lease is open for negotiation. Always try and negotiate some terms of the lease to suit your business appropriately. Do not meet the property owner and accept to all their terms; let them be open to your ideas. This is to make sure you strike a final deal that accommodates the interests of both parties.
Some of the terms in the discussion should be the will of the landlord to make some significant physical modifications of the building you want to lease etc.
3.Repair and maintenance responsibility.
Before signing a commercial lease, you should make sure the repair and maintenance responsibility is explicitly agreed in writing. Make sure you are leasing a commercial property that is well maintained just in case the repair and maintenance conditions are on the landlord.
If you agree to take up the responsibility, you must make sure that your budget covers this extra expense. If the responsibility is on you, the cost of the lease should also substantially go down.
4.Terms of the rent.
Before signing a commercial lease, you must clearly understand the terms of the rent. Let the landlord explain if the rent might go up anytime, if the rent increases every year, how you should make rent payments etc.
You must understand by what percent the rent goes up each year and the mode of payment of the rent. Assuming such clauses might bring conflict with the landlord after not so long.
5. What are you paying for?
When signing a commercial lease, you must understand all the expenses being covered. Also, know what the landlord will take care of. We have heard of people who signed a lease with the landlord promising no extra expenses, but with time the tenants found themselves paying for utilities and some maintenance.
These are some of the things you must know before putting pen to paper on that commercial lease. It will save you a lot of stress and misunderstanding.