16 Sep COMMERCIAL LEASES
WHAT TO CONSIDER BEFORE YOU SIGN
Commercial leases come in varying shapes and sizes. Before you sign your lease, there are a number of core issues for you to consider.
It’s good to remember that the initial rent stated in the lease can change over time (usually up!) through a rent review process.
You must ensure that the lease correctly identifies the premises you are leasing. If you are only leasing part of the property, then it is useful for the landlord to attach a floor plan that outlines the part of the premises you have exclusive use of and any areas of the premises that you can use in common with other tenants.
WHAT THE PREMISES CAN BE USED FOR
You should check the permitted use (also called ‘business use’) in the lease and ensure this correctly identifies what you want to use the premises for.
Outgoings (sometimes known as ‘opex’) are the additional day-to-day expenses you must factor into your costings, over and above the rental. These outgoings include charges for rates, utilities, insurance and maintenance.
In most cases the parties pay their own legal fees for the signing of a lease and documenting any changes such as rent reviews or renewals. If you don’t meet your obligations under the lease, your landlord can recover any expenses incurred in enforcing their rights from you.
It is important to do your homework. Your lease should be tailored to meet you business’s needs. Come and see us before you commit to anything and we can help you tailor your lease.
Contact Andrew today before you sign your lease agreement.