Leasing a commercial property is often a challenging process due to the variety of lease types, detailed agreements, the need for negotiation and other important factors. Even more concerning is the fact there are so many potential pitfalls along the way.
Even so, commercial lease transactions shouldn’t be more complex than necessary. To make the process easier, here are some common mistakes to avoid.
Failing to read the lease thoroughly
The lease will contain all the details you need to consider before putting a deposit down. These include rent, utilities, maintenance, use of space and more. As a business owner, you must study each clause carefully to see if the lease will fit well into your budget and business plan.
If something is unclear or confusing, don’t hesitate to seek clarification from the landlord. Doing so can help avoid disputes down the line.
Not negotiating terms
The negotiability of lease terms depends on each individual property owner. However, leases are negotiable most of the time, and you may be able to haggle over things like rent, improvements and renewal options.
Neglecting to specify the use of space
Most commercial landlords will require you to specify the use of space before signing the agreement. If the property owner forgets, you should volunteer this information to avoid any business limitations or conflicts with the landlord.
For example, suppose you lease a property for a restaurant. However, the space is only intended for retail. If you don’t specify your intended purpose before opening the restaurant, it can potentially lead to a breach of contract.
Commercial leases can be tricky, but knowing what mistakes to avoid can make it easier to obtain the space you want with fewer headaches. If you need guidance during this process, a legal professional can help you make the right decisions for you and your business.
