Whether you have been in charge of your own business for months, years, or decades, growing beyond your original premises and deciding that the time has come to move into a commercial property that is fit for purpose represents an exciting time for any business owner.
Still, finding the right commercial property is about finding the right terms, and the process of securing a fair and transparent commercial property lease is not simple, and going into the process with your eyes open to the potential pitfalls is essential.
Consider a Rent Free Period
As the name would suggest, a rent free period is a finite amount of time – during which you are not required to pay any rent to the landlord.
These are often used at the beginning of a lease, particularly when the state of the commercial property market puts the prospective tenant in a good position to negotiate an additional incentive from the landlord – though not exclusively.
Knowing when and how to negotiate a rent free period is something for which very few of us are prepared – and an excellent reason to keep a lawyer on-side during the process.
Allocate Rent Review Dates
Rent reviews typically occur once every few years, in the case of long-term commercial property leases. The frequency of rent review dates will vary significantly, and will be stipulated as a term within your lease agreement.
This is another factor that is best discussed with your prospective landlord, though, once again, without legal advice it can be difficult to feel confident in doing so.
Consider Break Clauses
Even if you feel sure about the property now, it is always better to enter into a lease agreement knowing that, should sudden circumstances arise, you will not be tethered to the contract for its duration.
Break clauses must be clearly stipulated, or your landlord may seek to contest your ability to meet the conditions of those clauses, and inhibit your ability to terminate the lease.
Review Your Obligations for Repairs and Decoration
The bulk of commercial property leases will stipulate some level of obligation that the tenant holds toward maintaining the property during, and at the end of, the lease.
As a tenant, it is vital that you do not sign yourself up for more work than you should reasonably be doing – and that means carefully reviewing, and possibly negotiating, the terms offered by the landlord.
The Key Takeaway
As you might have guessed, anyone seeking to sign a fair and mutually beneficial commercial property lease on behalf of their business stands to benefit immensely from the help and advice of a solicitor experienced in this branch of law.
From knowing when to negotiate, to being able to cut through the legal jargon used in leases, it would be remiss to begin the process of finding a commercial property to rent without first contacting a local solicitor.
After all, those who hold years’ of experience in a particular area will be best-placed to liaise with landlords – with whom they may have worked before.
For instance, a solicitors in Cheltenham will no doubt hold existing contacts in the area – contacts that a firm based solely in, say, London will not have had the opportunity to make.
