Getting the right building to start up a business is by no means that simple. Yet, it can be achieved by contacting commercial real estate lawyers and thereby being directed to specialized brokers who will lead you to your target. In this process, there comes a point where you need to sign the lease agreement with the landlord. This initial agreement is at most times turned towards the advantage of the landlord. However, you must keep in mind that there are certain factors in the lease which can be negotiated. Therefore, before going ahead with the signing, read it carefully and then proceed with signing for you never know how tactful the landlord could be. Below are some of the other factors related to this process which you may need to pay attention to.
Guarantees done personally
This simply means that a personal guarantee will be signed by you in getting a lease agreement because you never know when the business will become unable to pay rent. If such cases arise, in order to be on the safe side, the owner will make you sign an agreement, a personal guarantee which will ensure them that in case the business is unable to pay a required amount, you will personally bear the cost. This also means that the owner will look into your financial stability before proceeding into any agreements with you. Therefore, ensure that you are fit enough to enter into this deal with him/her.
When getting commercial buildings for rent, the fee plays an important role. In usual situations, the fee for commercial buildings is charged per annum, month or per square foot. However, the fee may not differ depending on how much square feet you use for your office areas because they tend to charge for the overall building. Therefore, taking the maximum utilization of the space given is completely in your hands.
Golden advice for you who is still taking baby steps in this business is to always get in to a short term lease. This is the best way to ensure that you will not have to keep paying rent if by any chance that your business goes bankrupt or you want to move to another location with the intention of expanding the business. However, the landlord would prefer to have longer lease terms. Make the best negotiation and get in to a lease that is beneficial for both parties because it’s much different than buy commercial real estate.
Although in most cases, the landlord is held responsible for the maintenance of the premises, in commercial lease agreements this tends to differ. Therefore, it is your job to clarify this matter in the written agreement itself.
By following these steps you can get into a successful commercial lease which would be beneficial for your business in the long run.