Property management

Key Elements of a Commercial Lease to Review Before You Sign

It is imperative that business owners who are entering into a new lease contract are confident in their ability to meet their monthly obligation. Lessees need to be sure that they understand all of a lease’s terms and what they must do in order to fully comply.

Rent Structures

Not all commercial leases have a flat rate for rent. Make note of whether the rental rate changes over the lease term. In many areas, it is common for businesses to pay a percentage of their gross or net income in addition to base rent. If you’re looking to lease commercial real estate Doylestown PA, verify rental rates before committing yourself.

Notice Requirements

commercial lease may stipulate where to send notices to your landlord. Picking up the phone to tell your landlord something may not provide sufficient legal notice. Check if your lease contains information about where you need to direct important communications.

Maintenance Obligations

Commercial landlords are not responsible for the upkeep of a premises in the same way that residential landlords are. If you’re accustomed to calling your landlord whenever there was a problem in a unit that you were living in, you need to be aware that you may not be able to do that with a commercial unit. One reason for this is that businesses generally need to alter a property in order to make it suitable for how they plan to use it.

Ultimately, you have to consider all of a lease’s provisions carefully. The cost of renting a commercial space can be one of the most expensive parts of a business’ overhead costs. Rents for retail stores and restaurants can be particularly high, and their ability to generate revenue can depend significantly on the quality of the space where they operate in addition to their location.

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