3 Tips For Signing A Commercial Lease
Posted on: 28 October 2016
When you want to be sure that your business is created with an excellent foundation and starting point, you'll need to find a company that can provide you excellent office space for rent. Commercial office leasing can be an excellent starting point so you do not need to worry about funding the purchase of your own building. If this is something that interests you, read on and incorporate these points below in order to get a better understanding of what to expect.
#1: Understand What To Expect From A Commercial Lease
Chances are high that you have signed a residential lease at some point in your life. However, these leases have some major differences from commercial leases. For one, residential leases typically involve a readily created form, while commercial leases can be tailor made to the circumstances of your business. Because of this, you should do your best to negotiate the terms of your commercial lease. For instance, you'll be able to negotiate things like the possibility of a rent increase, the length of the lease and the ability to sublease to another party. Be sure to speak with your attorney to go over each and every point prior to signing a commercial lease.
#2: Get Your Paperwork In Order
When you approach a commercial leasing company for residency, you can expedite the process by having all of your ducks in a row. Some things that you will likely need to provide are a business license, previous tax returns, identification, and bank information. With most commercial leases, you will need to typically provide a deposit to secure a spot. In some situations, it may be advantageous to provide a letter of credit, in lieu of the deposit, to guarantee your ability to pay the rent on a monthly basis.
#3: Protect Yourself From Liabilities
To be sure that you are able to take care of the property and protect yourself from potential issues, take it upon yourself to secure the insurance that you need. Shop around with multiple insurance companies when you are ready to sign a lease so you can have a liability plan in place upon moving in. Check the insurance company's rating and also ensure that they have good standing with the Better Business Bureau. For a liability insurance plan that protects both your rental space and other potential liabilities you may come across, you might pay anywhere between $500 and $3,000 annually.
Put these tips to use so that you can sign the commercial lease that you need.
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