Many people think that leasing for commercial purposes are easy as cooking rice. But in actuality, it is far from easy. When renting for commercial purpose, you have to consider lots of things. A commercial lease is also a very important factor to the success of your business.
Your lease in a building can also be considered an investment for you. In a commercial lease, you might just want to lease a floor in the building, a stall in a mall or for big business, you might want to lease the whole building.
When signing commercial leases, there are terms that you must be familiar with first and you also have check the details of the lease. You must ask questions and you should also make changes and suggest so that the lease agreement is both beneficial to you and your landlord.
Table of contents
Here are the terms you must be familiar with:
The use clause
This clause is placed in the contract to protect the property you are renting. All the things you can and cannot improve or remove in the building can be found in this clause. You must be very careful in checking this part of the contract because it will greatly impact your business especially if the ambience or environment of your place will impact your salability to the customers.
The exclusivity clause
Having a competitor in front of your stall is not good for your business. In the exclusivity clause, you can include an exclusivity clause wherein it would say that a competition in your kind of business should not be positioned near your stall. This is usually the case when you are renting a stall in the mall or a compound where there are lots of stalls available for commercial leases.
The lease contract should clearly state and defined the premises included in your lease. Also ask your landlord to include the common area, if there are any, in the premises you are leasing.
The security of the building is a big concern for businesses. The lease contract must clearly state who is responsible for the security of the building. If the building is big and constitutes lots of floors, the lease should specify which part of the building is the concern of the owner and which is the concern of the leaser.
Clarifications on the renewability of the contract should also be asked from the landlord but does not necessarily have to be included in the lease contract. It is important that the leaser knows if he will be able to renew the lease to the property so that he can make plans ahead. Resolution for disputes over the lease of the property should be included in the lease contract. This way, the landlord could not just evict the leaser when disputes occur.
Terms and conditions regarding the lease of a commercial property may be a little confusing if you have no knowledge of some legal things. If so, then you must consult a legal advisor on this matter.