The location where a business establishes itself often determines how profitable it will be. Business owners have to negotiate the right location and space.
A commercial lease can last for years, so business owners have to be careful what they are signing. Here are a few things to consider in a commercial lease:
1. Lease duration
As mentioned above, a lease can last for many years. This may benefit or hinder businesses. Some business owners look to start someplace small as they build an audience. However, that may mean they have plans to expand their services or goods, therefore, they may need to relocate. Or, a business owner may be comfortable with their location, but they want the security of knowing they won’t need to renew a lease for some time.
2. Rent
It’s important that business owners understand what they’re expected to pay each month. This contributes to a business’s monthly expenses. Business owners should also know what kind of security deposit is expected. Furthermore, a lease may need to include any plans for the rent to increase over time so that business owners can prepare to make adjustments to their expenses.
3. Alterations
Most business owners have a specific look they’re trying to achieve for their businesses. A commercial lease may need to include regulations for how an owner can alter the exterior and interior appearance of the business. For example, a business owner should know whether they can install a sign outside the business and its dimensions. Or, an owner should know if they can install walls or lighting inside.
4. Maintenance duties
Many leases clarify who is responsible for a building’s maintenance. Some leases make business owners responsible for repairs to a building, but others may have the landlord make repairs and charge business owners monthly fees.
Business owners may benefit from learning about their legal options when negotiating the terms of a commercial lease.