Buying a Starter Home

Commercial Leases 101: 3 Essential Tips For Startups

25 April 2017

Capucine Leroux

Purchasing a commercial space is exciting for those with budding businesses. Unfortunately, it isn't an easy task. All too often, people get wrapped up in the excitement and forget the small details. Finding a space you love is fantastic. However, don't be so excited that you skim over the lease agreement. Once signed, you're obligated to pay the rental fee until your lease expires.

Luckily, with a little patience and knowledge, finding that perfect commercial space – with a solid lease – can be easy. So what should you know before signing the lease? Here are three essentials:

1. Lease Length

One of the most important things you need to know is how long the lease is. This might sound like a no-brainer, but the lease length can be easy to overlook. However, you need to pay close attention to the lease length, as it may affect your business and finances.

If you are a startup business, a commercial property with a short lease is ideal. After all, you don't want to be locked in to paying for a space for 10 years if things go awry. For these businesses, a 6-12 month lease is best. This will give you the time you need to determine if you want to stay in the space.

2. What Is Included With Rent

Another thing you'll need to know is what is included with your monthly rental fee. Just like apartment rentals, commercial rentals include different things in the monthly rental fee. This can significantly impact your finances, so do your research.

Ideally, you'll want to find a landlord that offers maintenance and repairs. If the property has sidewalks or grassy areas, you might also want to have landscaping and snow removal services included. Another important thing to consider is whether parking is included in your lease. If it isn't – and you need it – you may wind up paying rent to another landlord for parking lot usage.

3. Other Tenants

Finally, you'll need to know what type of tenants your landlord rents to. This might sound odd, but it's actually very important. After all, you don't want other businesses to affect your business. For example, you don't want to have a family-oriented business next to a gun shop or bar. So be diligent and ask the landlord for this information. If possible, have it included in your lease to protect your business.

There is a lot of excitement when it comes to purchasing a commercial space. However, you need to be very careful when reading over the lease. Luckily, you can ensure that you and your business are protected by following these helpful tips. To learn more about leasing a commercial space, contact a company like Hartman Income REIT.

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