If you’re searching for new commercial space for your business in 2020, there a few things to keep in mind to maximise your lease agreement rights and to meet your needs.
Do Your Homework
The location and rental rates of the premises aren’t the only things you have to consider. You have to know your needs. What will you use the space for? How much space do you need? Where will the deliveries arrive? Are there restrooms, lifts, and offices that come with the space? If not, are there common areas that are convenient and accessible to you or your clients/customers?
You also need to have an understanding of how the landlord measures space and ensure it aligns with the lease agreement. Generally, commercial lease agreements include an annual increase in rental, and it’s percentage-based. It’s easier to find the right fit if you are clear with your needs. You should consult with a financial advisor to ensure the figures and rent increases are fair and you won’t be paying over the odds. Your advisor can also assist with determining whether you should opt for a short or long-term lease agreement.
Managing Costs & Rights
It’s important that you know what operating costs you will incur. Is the landlord taking care of the operating costs? Or, are those being charged to you separate from rent? Negotiate well, your agreement should be in your final agreement. You should know all the costs and expenses before you sign a lease.
Before you finalise the lease, ensure you have maximised your rights. Do you want the option to extend the space or renew the lease? What notice is required, are there penalties for terminating it early? You’re always best to enlist the services of a financial advisor or lawyer in these to ensure you have maximised your rights.