Looking for the perfect place to lease can be a frustrating affair. Your needs may be particular, and landing the ideal spot can take time. However, when you find the premises that meet your specifications, do not rush into signing the lease agreement. Given that you will likely be there for a considerable period, it is important to review your lease before signing it.
A lease is a legal document that needs due diligence on your part before signing on the dotted line. Below are some handy tips that you may want to consider beforehand.
Conduct your research
You may want to look deeper into the property owner, zoning and nuisance laws and environmental expectations. In addition, ensure that your intentions align with the use of the premises; otherwise, you should consider looking for an alternative rental.
Look at the financial side of the agreement
Be sure you know exactly how much you are supposed to pay and what it covers. Your rent may increase each year, and the best way to plan is by knowing the actual amount. Commercial leases are different, and some include extra payments like utilities, maintenance or insurance, while others sum up all your expenses in a single monthly lump sum.
The lease termination terms matter
Your business may grow faster than expected and require bigger premises. As such, it is necessary to review the transfer structure of your lease. An early termination can attract penalties depending on the terms of your lease. You also need to check whether you have an assignment of lease which allows you to sublet your rental to another tenant. You do not want to violate your lease agreement as it may come with added financial liabilities.
It is crucial to go through your lease agreement with an informed mindset. It could save your business many problems in the future, especially when unexpected developments occur.
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.