What To Know About Business Leases
If you’re a business owner, more than likely, you will need some space. Whether you need an office or a post for your new store, you will need commercial real estate. You will need to reserve that space through a business lease.
A business lease is not something you can take lightly, though. It is a legal document, and as such, requires research. It includes all the terms that will apply in your lease, such as how long the lease will last, use of the space, clauses about rent, and the security deposit. The fine print in a commercial lease is very important, so you should be aware of typical statutes included in business leases.
The first step is to do your research. This means determining the building owner and researching zoning laws. Before you sign a lease, make sure you get an idea of the payment structure, your own personal risk exposure, and any nuisance clauses in your lease.
Keep in mind that a business, or commercial, lease is different from a residential lease. In a business lease, the landlord agrees to rent out the business property, such as an office space, in exchange for money These leases may last 3-5 years, on average. This is similar to a residential lease, but such a lease cannot be used for running a business.
Commercial leases are also less regulated than residential leases, with fewer protections. However, they last longer and have greater flexibility when it comes to negotiating certain conditions.
While looking for a commercial lease property, take a good look at the area. Your business location means everything and it will give you a good idea of your potential clientele. Customers are what your business will need to thrive, so expect this process to take a long time — perhaps two years or longer.
Elements of a Commercial Lease
A commercial lease agreement is a contract, so it must include certain elements and key information for it to be valid. At a minimum, there should be information regarding the rent, security deposit, lease duration, and any additional costs you will need to pay. “Other costs” is a category you need to review carefully. This may include building insurance, property taxes, and maintenance costs, which can quickly add up to large overhead costs.
Learn More About Business Leasing
Moving your business into a new space can be exciting, but don’t do it blindly. Make sure to read the fine print so you can understand what all is involved. There are often many elements involved.
Need help understanding a business lease? Seek legal help from Orlando business leasing lawyer B.F. Godfrey from Godfrey Legal. Not every attorney has the hands-on experience or the extensive background that we bring to the table. Schedule a consultation today by calling (407) 890-0023 or filling out the online form.