Final points to check before signing the business location lease.
You should run through the following points before you sign the business lease agreement.
- Is there sufficient electrical power? Are there enough electrical outlets?
- Is there enough parking space for customers and employees?
- Is there sufficient lighting, heating and air-conditioning?
- What Signage can you put?
- Is your business in compliance with the city’s building and zoning department?
- Will the landlord permit alterations that you deem necessary?
- Do you have to return the building to its original condition when you move?
- Is there any indication of roof leaks?
- Is the occurrence of burglary insurance high in the area? [This varies tremendously.]
- Can you secure the building at a low cost against the threat of burglary?
- Will the health department approve of your business at this location?
- Will the fire department approve of your business at this location?
- Have you included a written description of the property in the lease agreement?
- Have you attached drawings of the property to the lease document?
- Do you have written guidelines for renewal terms?
- Do you know when your lease payment begins?
- Have you bargained for one to 3 months of the rent?
- Do you know your date when you take possession?
- Have you listed the owners responsibility for improvements?
- Do you pay the property taxes?
- Do you pay the insurance?
- Do you pay the maintenance fees?
- Do you pay the utilities?
- Do you pay the sewage fees?
- Have you asked your landlord for 5% off on your rent lease?
- Have you included penalty clause in case the project is late and you are denied occupancy?
- Have you retained the right to obtain your own bids for signage?
- Can you leave if the business center is never more than 70% leased?
- Has a real estate attorney review the contract?
Since everything is negotiable in a business, the business lease is also subject to negotiations regarding financial terms rent increases, the tenants rights and responsibilities, options for renewal, tenant leasehold improvements and other terms and conditions.
- While your agent can help you initiate and negotiate the biggest bumps on the lease, it should always be reviewed by an attorney who specializes in real estate.
You should only sign the business is after it has been reviewed and approved by your attorney. Typically, the 1st draft will be drafted by the landlord and or his attorney which you will then get reviewed by your own attorney before you sign it.
- At the end of the day, it is important to remember that it is your own personal judgment that is going to matter when choosing the ideal business location.
Statistic data and technological elements of the site one thing but you are the one who probably needs to get a balanced picture of the requirements of your business and just the location on its merits. Real estate brokers and economic development agencies can give you plenty of numbers since that is what they do.
- To get the accurate picture of the business location you should take time to visit the site yourself, talk to people who own or are working in nearby businesses and verify the facts and what they really mean to the potential success of your business.