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When first diving into the world of owning your own business, it isn't very likely you could do so without an office to work from, a shop to sell from, or a warehouse to store your goods. There are obvious exceptions, for example, internet businesses - but on the whole this statement holds true. What I am going to do in this article is outline two things to look out for before you sign the lease.
I am a commercial lease lawyer (Melbourne) who advises clients about lease issues. I have the benefit of understanding both the landlord and tenant perspective. I have had tenants come to me upset about their predicament which could have been prevented had they had proper legal advice going into the lease.
Firstly, the length of the lease should always be thoroughly considered. I'd generally suggest to a business starting out that a short term lease with many option periods attached will be most suitable. A couple of years is actually more than adequate, although some property owners will definitely allow considerably lesser lease terms when they are requested. Everything is potentially be negotiable; therefore by no means be hesitant to ask. Your solicitor will be helpful when it comes to negotiations on terms in case you actually want to have a somebody to get the deal done for you as your representative. Cornering yourself into a three four or five year lease is unwise. It will be significantly less of a challenge if the business thrives rapidly and also has to increase in size, yet there will nonetheless likely be a associated cost. Steer clear of becoming lured in solely as a result of supposedly low-priced rent or even a rent reduction period.
The second consideration is, tell your lease lawyer (Melbourne) to ensure that there's a an early exit clause in your business lease contract. This can be a clause which can be inserted to ensure that in the event that the new venture is not successful and you really want to shift buildings or maybe close up that particular business, you will be able to simply move on. Break conditions are not typically introduced by a landlord but can often be included as a special condition after application and as part of an total offer to a property owner.
Lastly, never forget that this will be a binding agreement - it will be very expensive to alter your decision in the middle of the lease. Try to remove the emotion of your new venture from the situation. Get the right lease terms at the beginning.
Leasing commercial property is typically a necessary part of having any business enterprise. All the content of this document is general information only and thus you need to get qualified legal advice for your own individual situation from an experienced lease lawyer melbourne.
I am a commercial lease lawyer (Melbourne) who advises clients about lease issues. I have the benefit of understanding both the landlord and tenant perspective. I have had tenants come to me upset about their predicament which could have been prevented had they had proper legal advice going into the lease.
Firstly, the length of the lease should always be thoroughly considered. I'd generally suggest to a business starting out that a short term lease with many option periods attached will be most suitable. A couple of years is actually more than adequate, although some property owners will definitely allow considerably lesser lease terms when they are requested. Everything is potentially be negotiable; therefore by no means be hesitant to ask. Your solicitor will be helpful when it comes to negotiations on terms in case you actually want to have a somebody to get the deal done for you as your representative. Cornering yourself into a three four or five year lease is unwise. It will be significantly less of a challenge if the business thrives rapidly and also has to increase in size, yet there will nonetheless likely be a associated cost. Steer clear of becoming lured in solely as a result of supposedly low-priced rent or even a rent reduction period.
The second consideration is, tell your lease lawyer (Melbourne) to ensure that there's a an early exit clause in your business lease contract. This can be a clause which can be inserted to ensure that in the event that the new venture is not successful and you really want to shift buildings or maybe close up that particular business, you will be able to simply move on. Break conditions are not typically introduced by a landlord but can often be included as a special condition after application and as part of an total offer to a property owner.
Lastly, never forget that this will be a binding agreement - it will be very expensive to alter your decision in the middle of the lease. Try to remove the emotion of your new venture from the situation. Get the right lease terms at the beginning.
Leasing commercial property is typically a necessary part of having any business enterprise. All the content of this document is general information only and thus you need to get qualified legal advice for your own individual situation from an experienced lease lawyer melbourne.
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To read more articles about commercial leasing, or to get legal advice, go to: Lease Lawyer Melbourne. To get more information about what to include in a commercial lease, go to Lease Lawyer Blog.
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