Know how to review your commercial lease
On behalf of Kadish & Associates Law Group posted in Commercial Real Estate Transactions on Thursday, November 2, 2017.
Trying to find a rental space for your company is often a test in patience. You have to find a space that is within your budget and can meet your needs for location and structure. This is often a challenge, but it usually isn’t impossible.
Once you find the perfect rental space for your company, you will need to work out the terms with the landlord and set the lease. This might be even more frustrating than the process of finding the location.
Many landlords try to use a standard lease, which isn’t bad in itself. Just remember that this type of lease is usually geared toward the landlord’s interests and not the tenant’s interests.
No matter what kind of lease you end up with, make sure that you review the terms of the lease. This can have an impact on how you run your business. You might find that there are restrictions that could prevent the focus of your business from evolving over time.
You need to review the specifics for the manner in which the utilities and maintenance costs are handled. This is especially important if you are considering a rental space that is shared with other tenants and you are responsible for utility costs. In this case, you need to find out how the costs are metered so that you aren’t liable for paying the expenses of another business.
The term of the lease and the payment schedule for rent are also important. Make sure that the lease starts when you plan on getting started in the space so you aren’t paying for days it will sit empty.
It is usually a good idea to have someone else review the lease for you. This can help you find anything that you might have missed. Once you are certain everything is on the up and up, you can sign it and enjoy your new place.
Source: FindLaw, “Commercial Property Lease Agreement,” accessed Nov. 02, 2017