Whether you have outgrown the space you are in or need a commercial space for the first time, you will have to sign a lease for that space. The allure of growing or starting your business can cloud your judgment when looking over that document, leading to mistakes that can be costly.
Generally, a lease agreement will cover things like how much rent is, increases in rent, length of the lease and a use clause.
It is crucial to read over the lease agreement with a fine-tooth comb. An experienced business law attorney can help you understand every detail before signing to help minimize the possibility of complications later on.
Common mistakes to look out for
Looking for your first commercial space can be exciting, but that excitement could make you lose focus of what you need the area to do. The most important thing is that the space needs to be within your budget and fits your needs. If you are unable to pay rent for the year upfront, you may not be ready to lease.
Leases will have a use clause. When negotiating the agreement, there needs to be open communication about your intended use for the space. There also needs to be clear expectations between you as the tenant, the landlord and the broker – if one is involved in the transaction – regarding the duties and responsibilities in the lease transaction. Not having clearly defined expectations can lead to conflict and costly disputes if unforeseen circumstances pop up. These disputes can jeopardize not only your lease but the cost from it could harm the future of your business.
You do not have to negotiate the lease on your own
While you are the only one who knows if a space works for your company, you do not need to go through the lease process on your own. Even though it may seem like a cost-saving measure, you may miss some of the finer details included that a knowledgeable attorney could catch.