5 Common Problems When Negotiating a Commercial Lease

In the times of rising rates of real estate, more and more start-up businesses are opting to rent office space than purchase property.

Whether you run a bakery or a toy store, you are going to be in need of office space for your business. And while getting a commercial business lease may be easy enough what with the number of deals present today, for new business, it is very easy to be duped into paying more and getting less when you don’t know what to look for.

Here we’ve compiled a list of the most common problems encountered by people that can potentially lead to a disastrous decision and how you can avoid falling into the same trap:

Being pressurised into signing long-term leases

You may think a long-term lease could help you stave off having to renew it for a longer time, but on the contrary, it is actually advisable to go for a short-term lease of one to two years for small businesses. This gives you the time to evaluate the property and see if it’s a good fit for your business. Signing yourself up for a five to ten-year lease only to find that the property doesn’t work for your business could leave you stuck in a rut.

Taking up the first option given to you

Many tenants, in their rush to set up their business, take up the very first offer they are given without researching comparable rents.

This could be because they’ve been given an eviction notice by their previous landlords, or because they need urgent space to expand their business. This could result in you ending up paying more than you needed to because you made a hasty decision without properly negotiating costs.

Not Looking for Hidden Costs

Many leases come with the clause that the tenant will have to manage the costs of any and all repairs or maintenance that the property may need. Not knowing this beforehand and overlooking it could lead you to having to pay money over the promised rent. Negotiate the clauses and try to get your landlord to cover maintenance and upkeep costs in exchange for a slightly higher rent.

Not Negotiating Clauses

In your hurry to get your hands on a property, you may make the mistake of not negotiating through clauses that you’re not completely comfortable with. Remember, initial agreements are drafted by landlords to suit their own interests. Agreeing with everything on the agreement, even if you don’t actually agree with them could land you in hot water later.

Overlooking Termination Clauses

Your landlord may have included a hidden clause in your agreement that says that he is allowed to evict you without any notice. This could be bad both for you, and your business. You want security and overlooking termination clauses could let your landlord kick you out to the curb with no prior notice.

Before signing any commercial lease, consult a tenancy solicitor to make sure you are not making any of the above mistakes. Wembley Solicitors, with their team of highly qualified and well-trained tenancy solicitors will provide you with the best advice and help you get the best lease deals in the city.