Most people understand the necessity of renting a commercial space. Unless you have the capital right now to buy the building, you must rent. However, the success of your business may be directly impacted by the terms of the lease agreement. Therefore, it’s important to understand how these contracts differ from residential ones and that you understand all the terms before signing.
How They Differ
Primarily, they differ in four ways. For one, there are fewer laws to protect the consumer (you). For example, there aren’t usually caps on the security deposit or rules that protect your privacy. Likewise, a commercial lease may not use standardised forms because of the customised nature of businesses. For that reason, you have to examine the rental agreement carefully before signing. If you’re unsure of something or want a professional to look things over, it may be best to hire a lawyer, such as V.S. George Lawyers.
Another difference between commercial and residential leases is that a commercial lease is more binding and longer-term. This means it is tough to change or break the agreement. If your business falters, you’re still stuck paying the bills.
Likewise, commercial leases usually use more negotiation tactics between the landlord and the owner of the business. Most companies require unique features and the ability to change the layout, which may be a problem with some landlords.
Lease Terms To Understand
Of course, you must always consider the basics of any agreement, such as the length of the lease, rent and how to pay, security deposits and the like. However, with commercial properties, rent payments may include property taxes, insurance, and maintenance, so it’s best to understand the terms set forth by the landlord.
Likewise, you should know what space you actually rent, which may not include restrooms, elevators, and hallways, in some cases.
