Starting a new business venture, or expanding your existing business, is exciting. Often, a key element in the development of your business will be securing suitable business premises and, most commonly, this will be done by entering into a lease of commercial premises.
You find the right premises and, in your mind’s eye, can see the potential of what it can be and how your business can grow. More excitement. At this point you should stop, think, and take expert advice.
Entering into a lease is more than just acquiring the right to use premises. It involves taking on obligations, often for a long period of time. Done properly, this can enhance the value of your business. Entered into rashly, if the business does not succeed as you hope, a Lease can give rise to serious adverse financial consequences.
Some key considerations upon considering the lease of commercial premises are:-
1. Is the proposed rent a fair market value rental?
2. How often will the rent be reviewed and how will that work?
3. What other costs will you be liable for?
4. How long will the Lease be for? It may be attractive to think you have secured the premises for a period of, say, 10 years, but should you be looking for a way out if things don’t go to plan?
5. What is the condition of the premises? You will have an obligation to maintain the property, but to what standard?
6. Will you need time to fit the premises out and start trading? Perhaps a “rent-free” period would be appropriate.
These are just some of the points we will help you address and find answers to, allowing you to take comfort that your occupation of your new business premises is secure and on terms you both understand fully and are comfortable with.
We have many years of experience in standing behind a large number of successful local businesses. We can help you set off on your next business adventure with confidence.