From our offices in Miami, we serve clients throughout Florida.

What should you look for in your commercial lease?

As a business owner, one of the first big steps you take involves signing a commercial lease. This will allow you to use commercial or retail space as a storefront, which helps you establish yourself in the local business scene and reach more customers.

Of course, commercial real estate also sells for a premium and often costs much more than residential real estate. For that reason, you want to do all you can to prepare yourself for this sale and understand exactly what is happening.

Lease terms and terminology

Business News Daily looks into preparing for your first commercial lease. There are certain things to keep an eye out for when signing a lease. First, look for the term of the lease. This will show how long you legally hold the property and the rent you pay. Many contracts have multi-year options, but default to just one year.

Next, make sure that the contract itself lists your business name as the tenant if you have an LLC or corporation. Doing so allows you some liability protection in the event that something goes wrong.

Rent, rights and responsibilities

Pay attention to the rent, too. This includes the cost, when it is due, and any penalties in place for potential late payments. Fortunately, most contracts will include a grace period before collecting any fees.

Look into your rights and responsibilities. For many renters, you must take care of things like lawn maintenance and snow removal yourself. Contracts will also inhibit your right to renovations or alterations and set standards for cleanliness. Be sure to read all restrictions and the rest of the contract carefully and always ask questions when needed.

Share This