Commercial lease- 5 Tips for New Business Owners

New-Business-Owners

Running a business isn’t as easy as many people think. The process involves getting an ideal commercial space, marketing, and convincing clients to buy from your store. The first step entails leasing business space, and this can be a real challenge. The process involves various legal terms and regulations, and not abiding by this can cost you a lot. Are you a new business owner seeking to lease a business space? Here are tips worth considering.

1. Ask for free rent!

Have you ever thought of free rent? Well, landlords give free rent, only if you ask for it. There are various reasons to warrant free rent. For instance, you may wish to lease a commercial space but only want to start paying after moving in. Most landlords will compromise and allow you the much-needed time before you can begin making monthly payments.

 However, if the landlord agrees to the arrangement, pay attention to what the contract says about the countdown. This may be after signing the agreement or when you open doors to your business. Have a commercial lease lawyer Toronto help you go through the contract details for a better understanding. 

2. Get all the build-out documents.

 In the case of a build-out, construction documents are key. Have the site plan and all the details of the floor plan and electrical systems. The GLG retail lease lawyer will advise you to have everything included in the lease agreement. Also, request them before the negotiations to allow ample time for the team to commence work as soon as possible. Plan everything early; this saves time and helps avoid unnecessary delays and costs.

3. Know your responsibilities 

All landlords and tenants have responsibilities, and this depends on the type of lease. Some agreements may place most of the expenses on the tenant, and it’s wise to understand what the contract stipulates. For instance, the tenant handles all the property expenses, repairs, maintenance, and insurance in a triple net lease.

 In other agreements, the landlord maintains the property’s exterior and structural aspects. Understanding this helps determine the actual cost lease, thus making an informed decision.

4. Inspection is key!

It’s your role to inspect the property and ensure that everything is in order. Have the electrical, plumbing, and HVAC examined before signing the lease agreement. If you sign the lease when there are faulty elements, you’ll be responsible for the damages. Moreover, discuss your responsibilities and have an attorney guide you in understanding all the details.

5. Read the lease terms.

 It can be tedious going through along document with multiple clauses. But any retail lease lawyer Toronto will tell you that you must do this! The lease agreement included crucial information, and you should go through all the details before appending your signature. 

This helps make an informed decision and avoid future misunderstandings with the landlord.

 For instance, if you don’t understand your responsibilities, you may violate the contract terms, and the landlord may evict or sue you.

Final thoughts

Leasing a commercial business space involves multiple steps, and engaging an attorney goes a long way. The legal professional will guide you in the process and help you understand the legal aspect of leasing a commercial space. Moreover, they will help you identify unforeseen faults or problems with the property.