Navigating the world of commercial real estate can feel like stepping into a maze. As a business owner, your focus is on growth and success, not getting lost in the fine print of a lease agreement.
In this blog, we’ll explain the essentials you need to know to protect your business and make informed decisions. Whether you’re opening your first storefront or expanding to a new location, understanding these components may help you save time and money in the long run.
What entrepreneurs should keep an eye on
It is crucial to understand the smallest details of your commercial lease agreement. Here are three key aspects to consider:
- Lease option dates: Your lease likely includes options to renew, which are beneficial for securing your business location long-term. However, these options usually come with strict deadlines. It is wise to mark these dates to avoid missing them, which may weaken your negotiation position or even risk eviction.
- Rental price changes: It’s essential to determine how the property owner structures rental prices on your lease. You do not have to accept your landlord’s proposed figures with your head down. Instead, calculate the increases from the start of your lease and ensure they align with your understanding. If discrepancies arise, don’t hesitate to ask for adjustments.
- Outgoing costs: Like managing business expenses, scrutinize the costs you’re responsible for under your lease. Ask for copies of invoices the landlord has paid or consider a third-party audit to verify the outgoings. This vigilance ensures you’re not overpaying.
It is highly important to stay proactive about your lease terms. This way, you can safeguard your firm’s financial health and ensure a smooth tenancy.
Reading the fine print of your lease
Your commercial lease agreement protects your company and ensures a smooth operation. Being proactive and informed about its components protects a critical cornerstone of your business’s success.