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 professional lease solicitor (Melbourne) who often advises valued clients in relation to lease conditions. I possess the main advantage of being familiar with both the landlord and the tenant standpoint. I also have people come to me troubled concerning their specific circumstance which may happen to have been averted had these people obtained suitable legal counsel before entering into a lease arrangement.
To begin with, the particular lease period must be cautiously contemplated. I will typically advise a new business enterprise starting out that a short lease contract coupled with a lot of option periods will be most suitable. A few years is usually more than adequate, and yet some property owners will definitely allow for considerably lesser lease durations should they be sought. Just about everything is usually negotiable and so in no way get hesitant to make a request. A solicitor will be helpful when it comes to negotiation of terms in case you actually are looking for another person who will bargain for you as your legal representative. Locking oneself into a three to five year lease contract might be imprudent. It will probably be significantly less of a challenge if your enterprise thrives rather quickly and therefore has to increase in size yet there is nonetheless probably some considerable financial impact. Keep away from getting lured in entirely via supposedly cheap rent or even a few weeks reduced rent 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 premises is a necessary part of running a business. The content of this article is informational only and you need to get competent legal advice for your specific circumstances from an experienced lease lawyer melbourne.
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