Signing a commercial lease is one of the most important commitments you can make as an entrepreneur. And when you sign one, you want to be sure that you get everything right the first time.
Unfortunately, to err is human. Amidst the pressure to sign quickly and secure that perfect property, you might make mistakes that may turn your business ownership dream into your worst nightmare. Here are a few mistakes you want to avoid when negotiating a commercial lease contract:
Failing to understand the lease terms
No matter how desperate you are to secure a premises for your business, never be in a rush to sign those dotted lines without first reading and understanding what you are getting into. If you cannot understand the legal jargon therein, seek help. Here are some of the areas you need to focus on while reading the lease agreement:
- Rent payments and reviews
- Subletting the property
- Repair and maintenance obligations
- Ending the contract
If the contract has provisions that might have an impact on your business down the road, do not keep quiet about it. Rather, negotiate for a better deal.
Overlooking your business’ future needs
Most entrepreneurs focus their premise acquisition strategy on their present needs. But what about your business’ expansion and, thus, changing needs? Does your lease guarantee the provision of additional space should you need it? And, does the contract provide room for subletting the property should your business face financial difficulty? Understanding your future business needs will certainly help you negotiate a better lease contract.
A sound commercial lease is crucial for the success of your entrepreneurship journey. Find out how proper legal guidance can help you negotiate a commercial lease agreement that will safeguard your personal and business interests.
