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You probably go to your local doctor once a year to make sure
everything is in working order, right? Well, it also makes good
sense to do the same with your business – taking stock and
doing a 'check up' in the New Year.
It can be easy to get bogged down in the 'now' of
running your business and lose sight of items you need to monitor
for long-term sustainability. For example, simply forgetting to
review your commercial property lease annually can mean passing up
an opportunity to stay up-to-date on your rights and
responsibilities under your lease.
Make sure you're getting the most out of your end of the
deal, and cast an eye over these important things in 2016:
Expiry Date
It might sound crazy, but have you checked that your lease
hasn't already expired? In the hustle and bustle of business it
can be easy for this date to come and go, and if it has passed, you
must make sure you have security over your business premises. For
example, if you received a one month's notice to vacate, would
you be able to pack up and leave the premises without any
planning?
If your lease is expiring soon, you should be looking around to
relocate or checking if your lease has an option to renew. If it
doesn't and you haven't kept yourself up-to-date you could
find yourself in hot water later on.
Outgoings
Are you paying the outgoings required by the lease? Is the
landlord paying what he/she should? It is worth keeping a record of
your outgoings - whether you audit them yourself or get someone to
do it for you - having this record can help you save money when you
review what's been going on.
Rent
If you know what the current market rental rates are for your
premises, you will have an advantage when it comes time to
renegotiate your lease. Don't be afraid to try and renew your
lease early if the market rates are lower so that you can try to
push for a reduced rent.
Suitability
If you have new staff coming out your ears and Sandra is
squeezed between the kitchen and the bathroom on a fold out chair,
it might be time to consider whether your premises still suits your
needs. Take a look at your lease and see if there's an option
to exit early, sublease or assign your lease to someone else. There
is no point staying in the same place and struggling, if there is a
better way to operate.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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