As a business owner, you need to take great care when signing a commercial lease. While the right premises can provide a solid base for future success, the wrong lease terms can consign your business hopes to the scrap heap before you have started.
Realize the original contract will be in the landlord’s favor. Landlords draw up leases to suit their needs because those are what they understand best. Therefore, it is up to you to watch your own back when considering a lease agreement.
Do not sign a lease that does not suit you
As each client is different, a landlord may not be aware of the small ways in which your requirements differ from those of the previous renter. If you do not tell them, they will stay unaware. Any contract needs to work for both sides, so it is up to you to explain if you need things changed in the agreement. They may agree, or they may refuse to make the changes, but then you have the choice to walk away.
Do not sign something you do not understand
A commercial lease is a legally binding contract. By signing, you agree to whatever terms the lease agreement contains. If you do not understand everything or are too busy to read it word by word, get help. Minor differences in wording can make a massive difference in real life.
For instance, there are several ways to price a rental property which may not be clear if it is your first time. It is not uncommon for a landlord to base commercial rent on a percentage of the renter’s gross receipts. Those who do not look for this provision could find themselves losing a portion of their profits. This is just one example of how signing a contract that you do not fully understand could cause serious harm to your company.