Deciding to lease a commercial property is a big investment in your company’s future (and also in your own). Before taking the plunge and signing that lease, make sure that all your ducks are indeed in line.
Below are some practical tips to follow when leasing, and also one thing to avoid.
Thoroughly research market rents
You don’t want to let the perfect spot slip through your fingers, but neither do you want to pay more than you should for the leased property. The way to prevent this is by doing your homework and learning what properties lease for in your area.
Agree on terms with the landlord
You might not want to take on a five- or 10-year lease with your new business. Being pragmatic, you realize that you could go belly-up long before your lease expires. Many property owners will agree to shorter rental terms for newer companies to establish themselves in the local economy.
Negotiate for any improvements
Lessors sometimes agree to make improvements or updates to their properties. But make sure to get it all in writing, or you could be stuck footing the bill for improving a property you don’t own.
Don’t trust your landlord’s math
Always check (then double-check) that the numbers add up right. Once you two sign off on the lease, the terms are set in stone without complex legal wrangling that’s easily prevented with some due diligence on your part.
Another good idea is to have your legal team review the terms of the lease before you sign it. Getting a legal review adds a layer of security to the lease-signing process.
