Despite the rise in popularity of working from home or a far-flung beach, most companies still need a base. As a business owner, that probably means you need to rent somewhere.
Commercial leases can be tricky to understand, as they can vary so much. Yet, tying yourself into the wrong contract could prove disastrous. Here are some questions to consider before you agree to lease commercial premises:
What can’t I do with the property?
Some landlords can be very particular, as can most local authorities. Restrictions could range from not erecting a billboard outside to not opening on Sundays, from not selling food to not subletting to anyone else (which might be crucial if your business cannot make the rent as hoped).
How much security do I have?
Predicting your costs ahead of time is vital. If the landlord can triple your rent when your contract ends, surprise you with extra charges or throw you out with hardly any notice, it jeopardizes the security of your business.
You need to understand exactly what is and is not included in the price, when and by how much they can up the rent and why and with how much notice they can ask you to leave.
What if I need to pull out early?
The agility to adapt quickly can be crucial in business. If you realize that the location is wrong or that you need somewhere smaller or larger, you may need to end your contract early. Some contracts can make that extremely hard to do without severe financial penalties.
Hopefully, you have realized how tricky commercial lease agreements can be. Consider legal help to check yours is suitable before you sign it.