Whether you’re starting a new business or looking to move your current operation to a new location, securing a commercial lease that benefits your business is critical. Getting a good price on rent is essential for keeping your costs down, but you also need to consider whether the language of the lease agreement you are planning to sign will make running your business more difficult than it should be. Negotiating your contract can help ensure that your landlord is working for you and not the other way around. After all, you are the customer in this instance.
Consider these 3 tips before it comes time to sign the dotted line:
Read the Lease Documents Closely
Most likely, your potential landlord isn’t trying to pull a fast one on you in the fine print of the lease agreement. However, because the landlord is the author of the document, the language is going to favor him or her. What modifications, if any, can you make to the property? Will the landlord allow your competition to rent a space nearby? How long is the lease? Asking yourself how each clause would affect the operation of your business can keep you from agreeing to conditions that do not benefit you.
Ask for Help
More often than not, a landlord will hire an attorney to help draw up the lease documents, which can result in dense legalese that is difficult to understand. You want to make sure that you comprehend what you are agreeing to before you put pen to paper. Otherwise, you could end up stuck in a lease that takes more than it gives, leaving you with renter’s remorse. Like your would-be landlord, you should hire an attorney to read through the documents and explain any parts of the contract that you don’t quite understand. An attorney is trained to think of the legal implications of language, which allows them to catch things that you would miss on your own. Additionally, you can be sure that any clauses you decide to add to the agreement will be favorable to your business when you hire an attorney. Having one on your side can make all the difference.
Do Your Research
What price does a similar rental property go for where you want to do business? Knowing how much value others give to their commercial space can help you get a better price. You should also consider any environmental and cosmetic factors of the surrounding area that might adversely affect your business’s image and operation should you decide to rent the space. In addition to looking at the property’s neighborhood, you should look into the property itself. Does the building have a history of any problems? You and your attorney can stipulate in the lease agreement that any problems with the building’s infrastructure be taken care of before you agree to your landlord’s conditions.
Your business is your livelihood. As the face of your operation, the space that you rent should work with your goals toward growing that business. Knowing how to negotiate a commercial lease so that the language benefits you rather than your landlord can help in that regard, and one way to make sure that that is the case is to have trained help. At AM Law, our experienced real estate attorneys can assist you in negotiating a fair price on the commercial rental property of your choice. For the best renting advice, contact us today so you can begin negotiating a lease that works for you.