Thinking Of Renting Commercial Property? Here Are 5 Things You Need To Know First
Taking the plunge and renting a commercial property for your business can be daunting. Becoming a commercial tenant is a different ball game to the residential world. There’s a lot to consider, so it’s no wonder it’s daunting to some.
You must understand what you’re taking on. And that you know what to look for and consider before signing on the dotted line. Every situation is different, but knowing what to expect beforehand leaves you better armed and more confident to make the right decisions. Here are 5 fundamental points to remember when renting commercial property.
- Give Yourself Time
This is two-fold. You want to take your time when selecting the property first of all. Take that extra day just to consider whether this is the right place for you. Landlords will understand, and when you do come to commit to a property, you’ll feel even more confident that it’s the right one for you.
Next, you’ll need time at the start. Once you’ve chosen the property, it can take months before you actually get to sign on the dotted line. Be clear about the date on which you want to move in and be direct with the landlord. Remember, it’s their business too, so they also want to protect themselves and get the best deal possible. This leads to a lot of to-ing and fro-ing. Hence why it can be a while before you sign the final lease agreement.
- Location, Location, Location
The location is one of the most important aspects of renting a commercial property you can consider (aside from the actual lease.) Make sure that it has good transport links available. That’ll make the transition for yourself and your employees easier because getting there won’t be a complete nightmare. But also think of the location from a safety aspect. Would it be safe for one employee to close up on their own? If not, could you afford security installation of having two employees at every open and close?
And finally, are the premises suitable? You want to be able to seamlessly install your company’s fixtures without too much change or faff at the start. It’s also an excellent time to consider the future. If you were to expand quicker than forecasted, could this space take that? Having a future-proof property is integral to company success. And if you outgrow the space before the contract is up, you may find yourself struggling to find a way out of your lease.
- Understand Your Leasing Agreement
This might be the most crucial point on this list. You’ll need to know the in’s and out’s of your commercial lease before you sign your money away. Be sure about the lease term. It doesn’t make sense to commit to a long-term lease if you aren’t confident of the future. You may want to include a break option or even have the ability to extend the lease.
Get into the nitty-gritty of the agreement too. Like who makes repairs? Are you allowed to make alterations? If the price is correct, but the space requires a bit of imagination, you’ll want to make sure the ability to make alterations is in there. Understand what is expected of you and define what you expect from your landlord. Hashing this out before signing will save you from negotiating your commercial lease down the line.
As with any agreement or contract, there’s always a little wiggle room. Don’t be afraid to ask the question. You could shave a bit of the rent off if you take the time to negotiate with your prospective landlord. And no matter how much you fall in love with a property, always be prepared to walk away if the deal isn’t right.
Also, review your obligations and the clauses in your lease. The devil is in the details, so be certain those details fit your business. Signing a bad lease or having to deal with a bad landlord can see you haemorrhaging money down the line. Always get a lawyer to look over the lease before agreeing to anything. Your attorney works for you, so you know they have your best interests at heart.
- Do Your Homework
Getting the best property and the best commercial leasing agreement is about putting the time, effort, and research in. Look at a lot of different properties. Ask around about the potential landlords. Really take the time to study whether the location you want is as perfect as it seems.
Doing the work at the beginning saves you from doing it down the line, when often it would be too late to protect you from a bad lease agreement and a bad commercial property.
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