Whether you are planning to rent a commercial space for your new business or ready to grow your already established business, there are certain things that you need to consider before signing the deal with your landlord. Apart from the obvious factors such as rent, location, and available facilities, there are other important aspects that, if overlooked, can leave you dissatisfied with your choice. But you have nothing to be worried about, we have you covered. Here are all the things to consider before renting a commercial space.
Know your terms
Going through your leasing terms is one of the most important things to consider before renting a commercial space. Generally, a commercial lease tends to be more involved than a residential agreement. Meaning owners have a certain edge when it comes to restrictions and authorizations. But there is one leeway for tenants they can take advantage of– the contract can be tailored to fit tenants’ specific needs. You just need to discuss them with your landlord.
Also, many multi-tenanted commercial properties require tenants to pay a service charge for general building maintenance fees. But it is largely variable and can cover a wide range of activities before you move in. So take advantage of it.
Last but not least, always go through the fine print, especially when a lawyer is not involved. Leases are historically tricky to navigate, so signing up for something you are not ready for is very probable.
Repairing obligations
Always be mindful of the repairing obligations because they are the most important things to consider before renting a commercial space. There are different leases, and most require the tenant to keep the building in fair condition. In other words, this often means repairing the roof if it leaks or fixing structural defects. It usually also means that the building will need to be put back into good condition when you come to leave.
Out-of-hours access
Having restrictive hours of access is not uncommon for commercial buildings. It is okay but can be convenient sometimes. It’s worth checking whether you can get in during an emergency or on the weekend, just in case you need to access something important in the office.
Know your area
Location means everything for a small business to thrive, so when you’re scouting for suitable properties, take the time to find the right home for your business. The process can take months or even longer, so plan accordingly if your current lease’s end is in sight. Or you can just take the assistance of Bproperty.
Always negotiate
Accepting a landlord’s rental terms when offered the first time may not be wise. Always try to negotiate on the price or for other concessions. But most importantly, no matter how much you love a property or how perfect it seems, be willing to walk away. If the landlord understands this from the beginning, you will negotiate from a place of strength.
Exit Plan
Of all the things to consider before renting a commercial space, an exit strategy is undoubtedly essential. What if your market suddenly shifts? What if you need to hire more people to cope? There are two ways, you may sign a shorter lease or propose an alternate use agreement.
Written Agreement checklist
Regardless of the property you choose, be sure your agreement is clear about the following:
- Rent amount, including base and additional
- Payment period and procedures
- Rent increases
- Length of the lease
- Improvements to be done by the landlord
- Tenant improvements
- Specific use
- Rights on reentry
- Security deposit
- Assignment and subletting
- Zoning contingency
- Lease termination
Knowing your terms and other necessary things is essential to avoid unwanted situations. In this article, we tried to shed light on the less obvious things people forget when renting a commercial property.
Dealing with these things can be exhausting, and you might want to spend your energy somewhere productive. If that is the case, then resorting to Bproperty can be a great option. Not only will they tackle all the issues for you, but they will also ensure you get the right property with all the necessary features.
