Commercial Lease Agreements

When you enter into an agreement for the lease of a commercial property, you should expect to see certain clauses in your contract of which some should be looked at very carefully before you sign on the dotted line.check here

-The actual rent

The actual rent amount, particularly for smaller businesses, is one of the main components of a commercial lease and this is one area where there is some space for negotiations, even though the rental amount itself is already established.

*Rental increases

Find out how much the increases are, when they are in effect and what they are based on.

*Deductions for improvements by the tenant

Establish whether any improvements you make to the property will be deducted from the rent.

*Landlord’s operating costs

Ask what percentage of the operating costs for the property will be your responsibility.

-Property inspection

Before signing a lease, do a methodical inspection of the property and take notes of any possible problems such as repairs that need to be carried out or any upgrades that need to be done. In terms of existing damage or faults, take photographs and inform the landlord in advance, to avoid the landlord from charging you for these repairs or faults when you leave the property.

-Make sure the repairs are done before you take occupancy

Repairs and upgrades should be done before you sign the lease or at least before you take occupancy of the property. The lease should include details of this such as completion times. This is important to avoid business interference or even closure, due to ongoing work.