Many who cannot afford to build their own business property have opted for commercial leases as more affordable alternatives. Like how a tenant rents an apartment, a tenant in a commercial lease rents a property for business purposes while paying rent to the landlord.
If you are planning to enter a commercial lease, you must consider a few things first to ensure that you are not getting yourself into any potential problems or trouble.
Here are a few things you must consider before entering a commercial lease:
Costs to cover
While you will obviously have to pay rent, there might be additional costs that you will have to pay as well. Some landlords will want you to cover additional fees such as security deposits and maintenance services, while other landlords might not.
For this reason, never forget to look at the full the costs you must pay, regardless of whatever type of lease you are planning to enter. Ensure that the lease agreement specifies what kind of fees you are going to have to cover in addition to the rent cost.
You can do this by looking at the agreement thoroughly for any indication for expenses as well as outgoings. If there are any, be sure to talk with the landlord to get the details for each one so that you can avoid any misunderstandings.
Incentives and benefits
Many commercial leases come with some type of incentive to attract tenants to rent the place. For example, these incentives can include a reduced rent cost for a certain time or even a temporary waiver of the entire cost. Fit-out contributions might also be included, where the landlord helps pay to turn the facilities into a place suitable for you to work in.
If you find any of these incentives in the lease you are signing, note that you might get additional benefits if your contract will cover an extended period. For example, if you are entering into one for the long-term, your one-month, rent-free period might become a three-month, rent-free period.
While you certainly should keep an eye for these kinds of benefits, make sure that you’re not ending up staying in a place you don’t like for too long just because you want to make the most out of the incentives.
Note that just because you have rented a place for business purposes, it does not mean you can operate any business within it. To be sure you can carry out what you had in mind without trouble, always check with the local council and find out whether or not what you are doing is permitted.
If you find that you will need to redevelop the place to do business, you should make sure that your lease will only be active once the development approval has been accepted (a document to be given to the council). This way, if you do get rejected, you do not end up entering the lease that does not fit your needs.
To summarize, before you enter any commercial lease, always check the costs you need to cover, make sure you can use the premises for your intended purposes, and look out for any incentives to benefit your venture. By paying attention to these three factors in a commercial lease, not only will it be smooth-sailing from here on out, but you will find the best commercial rental that offers precisely what you need.
Need more help to make sure you are getting into a commercial lease without issue? If you need a commercial lawyer in Brisbane to work with for your commercial lease, reach out to us!