Things to consider before signing a commercial lease
When organising a commercial lease agreement, it is important that you take into account a couple of points first that will help you get the best out of any Agreement to Lease or Offer to Lease you sign with a commercial landlord or commercial leasing agent.
First of all, you need to make sure that everything you have agreed to with the Lessor (or commercial leasing agent) is in writing and contained in the Agreement to Lease.
An Agreement to Lease is a separate document to the Lease itself. It is not a generic document, therefore it needs to be tailored to suit your needs specifically.
Secondly, in contrast to the first point, you need to ensure that nothing is in the agreement that shouldn’t be there.
Agreements to Lease and/or Offers to Lease as well as the actual Lease need to be read thoroughly and carefully so that you are getting exactly what you pay for and don’t face any unexpected liabilities you didn’t agree to.
Most people do not realise that a demolition or relocation clause can exist in a Lease and if it does, the dramatic effect it can have on your business!
You also should inspect the term and options of the Lease carefully (i.e. whether there is an option to renew the Lease). This is important as generally you will want to protect your business and will want an appropriate Lease term with option periods to secure your business.
Last but not least, the Lessee and Lessor must both be aware of their rights regarding the termination of the Lease and the consequences involved with this. Legal arguments can ensue as a result of breaches in the Lease which all parties should be aware of.
You need to ensure that any Agreement to Lease or Offer to Lease does not bind you to a generic Lease agreement without the ability to negotiate its complex terms. Give us the opportunity to review the agreement and we will promise you a 24 hour turnaround on that advice before you sign the Agreement to Lease or Offer to Lease!
Our experienced commercial leasing expertise spanning nearly 30 years can help tailor solutions to your business needs and give you peace of mind to embark on your business opportunity.
Contact us now to look over your Agreement to Lease or Offer to Lease for you, at email@example.com or call 1300 HATZIS (1300 428 947) .