If you are taking out a commercial lease for the first time, it is crucial to understand that they differ considerably from residential ones.
Here are some of the most notable differences to be aware of:
The law gives you less protection
There is a certain assumption that, as a business owner, you are savvy enough to look out for your own interests. Thus the law does not give you as much protection as it does for people leasing residential premises.
You may face considerable additional costs
Landlords use several different ways to price commercial space. Failing to understand these at the outset could mean you need to pay much more than you thought, which could make your business unviable. However, getting out of the lease might not be easy, especially if you agreed to a long contract with prohibitive penalties for ending it early.
Your lease might not be the same as your neighbor’s
Commercial landlords have much more freedom to negotiate individual terms with each client. Your contract could vary massively from the company that leases the space next door.
Commercial leases can be more restrictive
When you rent somewhere to live, you can pretty much do what you want within reason, provided it is legal and does not annoy the neighbors. Commercial landlords often place much more restrictions. They may restrict the type of business you run, the opening hours you can maintain and more.
Commercial leases can be incredibly complex. Getting legal help to negotiate the terms you need is wise and can help you avoid pitfalls that could leave you needing legal assistance to resolve a dispute later. If you need a review of an existing lease or are negotiating a commercial lease, contact us for a consultation.