Posted on: 21 October 2019
Many people find signing a commercial lease exciting. However, a commercial lease won't be that exciting if you don't scrutinise it well. Never assume that a commercial lease is simple, whether it involves a small office or big retail shop or restaurant. Everything about the commercial lease doesn't only involve the perfect location of the property you want to lease. Pay attention to other details of the lease if you want to avoid future problems. Signing a commercial lease is a smart decision if you are keen on every step involved in the lease process. See what you should do when signing a commercial lease:
Give Negotiation a Professional Angle
The commercial lease probably won't work as you expected if you choose to negotiate the lease yourself. Negotiating a commercial lease isn't a task everyone else can do – only experts such as an attorney have the expertise to do it the right way. An attorney assesses the location of the property and what the property owner wants to offer to know the negotiation tactics to use. Getting out the bad lease you signed would cost you more and leave you more distressed than consulting with a lawyer from the beginning. The landlord may propose some clauses that won't be favourable to you, and you won't notice this if you don't have a professional to negotiate the lease for you.
Know the Commercial Lease to Choose
You waste a lot of money and time when you don't review the commercial lease you intend to sign. Negotiating a commercial lease isn't easy. It requires you to know what to expect from the lease and how to prepare for it. Net leases, gross leases and percentage leases are the common leases you find in the real estate industry. If you choose to sign a gross lease, the rent you pay will cover the property's operating costs, which include repair costs, maintenance costs, property taxes and utilities. In a net commercial lease, you meet some extra operating costs besides paying the normal rent. Those who sign a percentage commercial lease pay the rent and a percentage of their business revenue.
Understand the Elements of the Commercial Lease
Different commercial leases have different elements, and they are confusing if you don't understand them well. Your lease contract will determine how and when the lease details change. The lease agreement should include the price, lease date and names of the individuals involved. The commercial lease should specify who should maintain and insure the property. Don't sign a commercial lease if it's not clear since this will reduce your negotiating power in the future.
Signing a commercial lease before you identify your business goals is a great mistake. Negotiating a lease is about more than getting the lowest rent, and that's why you should leave it to a professional. A commercial lease is legally binding; so every clause it contains should respect your rights. This way, you save more energy and time and minimise unforeseen risks.
To learn more about commercial leases, consult a lawyer in your area, like those at CJM Lawyers.Share