Some of the major expenses that small businesses incur are rent and wages. When businesses are still small or in the early stages of existence, leasing commercial space will be a critical decision in the business’s growth.
It is important that you take a few moments to understand the leasing process. Familiarizing yourself with some of the things that you need to know can help you protect your investment. It can also help you avoid some of the things that some unscrupulous property owners may use to take advantage of you when you are negotiating your lease.
Understand the costs that come with your lease
Signing a commercial lease comes with some degree of financial commitment. It is important to go through the lease document carefully so as to understand what you will be getting yourself into. You need to make sure that you know what sort of needs that you have for your business so that the location you select is the right place for you to grow your business. No one wants to be stuck in a costly location that negatively impacts your ability to make a profit.
Whether you are looking for a professional location or space to be used as a storefront, you should think about the effect that the location will have on your business. The location of any business will influence perceptions about its image. Your customers may come to associate your business with a certain place, and if you have to move, it could force you to have to rebuild your customer base.
Know what your lease is asking you to do
Most commercial lease agreements will use real estate terminology that you may not be familiar with, which some landlords may say is simply boilerplate language. However, not every lease is the same. Every lease is different, and needs to be carefully reviewed so that you know exactly what sort of obligations that you have throughout the terms of your lease. You should look out for any terms or statements that could translate to hidden costs. Be clear about who will pay for facilities like electricity, the internet, parking, security and minor repairs in case of damages.
The fine print matters. You need to seek the help of an experienced commercial leasing attorney when looking to lease commercial space. This will not only help you understand your lease agreements, but can also help you negotiate better terms in these agreements. Having an experienced professional by your side will also ensure that you avoid some common mistakes that most small business owners make.