It is not easy to set up a business. There are a number of things that you need to consider when setting up your business. Searching for the best location where you can establish your business is very important especially if you want it to be successful. The owner of the property will create and prepare the commercial lease for their renters. Because you are going to be a potential renter, it is very important that you carefully read and understand the commercial lease so you will know your requirements and rights.
Below are helpful commercial lease negotiation tips:
A. You need to set the length of the lease based on the requirements of your business
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Businesses that are just starting should have a lease term that can last for one to two years, but it is important that the lease is renewable. You should not have a long term lease especially if you will find a better space or if your business is not growing. But, if you really think that your business will be successful in that location then you should have a much longer lease.
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B. You need to get a good price
When you carefully conduct a thorough research on different commercial rental prices then you will be able to know and negotiate on a good price for your space. If you will sign up for a multi year deal then you should expect that the landlord will increase every year. This is the reason why you should negotiate on the increase.
C. You need to look out for any hidden charges
Commercial leases requires every renter to properly maintain the commercial space. It is really essential that you know if there are any kind of hidden charges. As a renter you need to know your responsibility. Always make sure that the terms will be favorable for your business.
D. Try to negotiate that will be favorable for your business
There are instances when you need to alter the space according to your specifications so it would be best if you know how to negotiate with the costs of the space. If your business is dependent on an anchor tenant, then you need to have a co-tenancy clause. You can also make negotiations on subleasing clause so you can sublet your space especially if you plan to relocate your business.
It is very important that you know and understand the terms of the lease. This is really great especially if you want to avoid getting evicted from your space. This terms will not let you pay for the whole lease in case you get evicted.