If your business is expanding or opening a new location, or if you are opening your first location, it’s an exciting time. Chances are, you want to get all the paperwork out of the way as quickly as possible and start moving in.
While it’s great to be excited, make sure you take time to read your commercial lease before signing carefully. Failure to do this can lead to some issues down the road.
You need to look to see what the term of the lease is as stipulated in the contract. Some landlords may tell you the lease is for a year, but it reads 18 months or longer in the contract. While this may not be on purpose, it’s important to know the lease’s term. Remember, once you sign, this is the amount of time you are legally contracted to pay for the space, even if you decide to move or close your business.
Your lease will outline exactly how you can and cannot use the space. If you happen to engage in an activity or use that is not allowed by the contract, it can create significant legal problems. It’s important to know what is and is not allowed before signing so you don’t plan your next business move around something that isn’t permitted.
In most cases, the rent for commercial spaces will increase over time. The increase period and amounts should be stipulated in the lease. This includes when they will occur and how much the rent will be increased.
Understanding your commercial lease
Before signing a commercial lease, it is important to understand the terms and know the conditions of having the space. With the tips above, you can avoid surprises and issues once you move in.