Leasing a commercial property is not an easy undertaking. In fact, whether your business will succeed it or not may depend on certain terms and conditions of the commercial lease. Nonetheless, having a thorough knowledge about the leasing process can help you negotiate for a better deal that can also be beneficial to the property-owner.
If you are planning to lease a commercial property soon, you must first understand how the different aspects that can affect the agreement. Before you sign anything, it is imperative to understand the basic terms and aspects of leasing, such as the type of lease arrangement, amount of rent, the duration of the lease, the rules concerning the use of signages, the amenities included in the property, and various leasing laws that should be taken into account.
To help you out, here is the list of items that you should look for in a commercial lease contract:
- The length of the lease – when it starts and whether there are renewal options.
- The amount of rent and how it will be calculated.
- The type of lease: gross lease, wherein your payment includes items such as insurance, property taxes, and maintenance cost; or net lease.
- The amount of security deposit and conditions for its return.
- The type of property, and how the landlord measures the space.
- The alterations, furniture, and other enhancements added to the property and who will pay for them.
- The party assigned for maintenance and repair of the utilities systems present, such as the HVAC and water pipeline.
- The option of whether the property can be assigned or subleased to another subtenant.
To learn more, check out the infographic below from Amorys Solicitors which listed out the essential questions a prospective tenant should ask before leasing a commercial property.