Commercial leases can be quite expensive and have a lot of factors to consider aside from the leasing cost. It’s best to negotiate with the leasing agent to ensure that you receive the best deal possible that also covers all of your business needs. Having a commercial law firm take a look and have a hand in the negotiations can help you navigate a process that is quite tricky. Whether you get legal help or choose to do it on your own, here are a few tips to help you through the process.
It’s important to know exactly what you should be getting from a lease. Research other leases in the area and look at prices, conditions to the lease, and what the terms are. That way, when you go to negotiate your own lease, you will know what is typical in your city and what is not. When armed with this knowledge you’ll know if the proposed lease is reasonable. Take your time with this process. You don’t want to be rushed into a decision without all of the facts.
Depending on the property, you can often negotiate a rent-free period or decreased rent if you need time to renovate the property to make it fit your business needs. Although not all landlords will allow for this, especially if the space is in a desirable neighbourhood, it’s worth asking. You may be pleasantly surprised by the answer.
There are many ways that your business can go. You may grow rapidly and need a bigger space faster than you expected, or your business may not do well and you could need to close your space down. It’s important to build in flexibility to your lease so that you can break it early with little penalty.
The lease should state who is responsible for repairs and make sure that there are timelines on repairs that the landlord is responsible for. Without including this in the lease, you could be left with repairs that drag on and prevent your business from functioning for months.
Additional charges can add up and make or break your budget. It is important to set a cap on contributions that go beyond your rent so that your landlord cannot continue to add charges for things to make more money off of you.
Negotiating can be difficult. It is important to have the help you need to make sure all of the little details are taken care of and you are in a good place with your landlord from the start.
Contact Blacks Legal today for help with negotiating a commercial lease.