Top Issues With Commercial Leases
If you are just starting out as an entrepreneur, you know that there’s a lot involved. Not only do you have to get your finances in order, but you probably also need to find a location. This may not be an issue if your company is fully online, but if you have a physical business, you will need to find the right location. This often means leasing retail space.
It can be expensive to buy a location outright, especially if you’re not sure if your business is going to be successful a few years from now. That’s why leasing is so popular. It allows you to rent out space, like you would a place to live. However, the main difference is that commercial tenants have fewer legal protections. When an issue crops up, the landlord typically has the upper hand.
That’s why it’s a good idea for the business owner to negotiate as much as possible. Here are some top issues you’ll want to look for and ensure that they’re as favorable for you, the entrepreneur, as possible.
It’s all about location. You need to think about where the building is located as well as what it offers. Do you have all the amenities you need to operate your business? Think about the size as well as the electrical and plumbing capacities, depending on the type of business you have. If it’s not big enough, can you expand?
The most common reason for default is not paying the rent. Compare rent prices to other buildings in the area. Is it reasonable? If so, when does it start? When will it increase? Are there other fees involved?
If you commit to the lease, you should be given full access to the building and it should be in good working order. Are any repairs needed? If so, who will be performing the work and what is the timeline involved? Will you be given a discount or some other benefit for doing any work yourself?
Maintenance and Repairs
Buildings need to be maintained or else major problems can develop. In residential situations, the landlord is responsible for maintenance and repairs, but this is not always the case with commercial leases. Therefore, you need to know this information up front. Who is responsible for paying for repairs if something happens to the roof, electrical, or structural system? The lease agreement should clearly address responsibility.
Learn More About Business Leasing
Business leasing can provide you with a temporary home for you to conduct your business. However, there are some cons to the process, so make sure you know what to look for so you can avoid common issues.
Orlando business leasing lawyer B.F. Godfrey from Godfrey Legal can help you avoid mistakes as you navigate the process of entrepreneurship. Schedule a consultation with our office today by calling (407) 890-0023 or filling out the online form.