You have decided that you are ready to advance your career. You have completed your education and have decided that you want to start your own business. You’ve created marketing plans and researched the competition. You know you have a great product and are ready to provide it to the public. The time to take action is now.
You know what your small business will be. Now you are ready to find a location for your business. You have decided that it will be best for you to rent out a space for your business.
What kind of commercial leases are there?
There are different types of commercial leases available. You will want to thoroughly examine your lease agreement. In some cases, you may want to negotiate your lease with the landlord in order to better tailor it to your business needs.
Single-net lease: In this lease you, as a business tenant, will be responsible for rent, utilities and property taxes.
Net-net lease: As a tenant, with this commercial lease you will be responsible for rent, all utilities, property taxes and any insurance premiums associated with the building.
Triple- net lease: When you sign a triple-net lease for your business, you will be responsible for rent, property taxes, insurance on the building, and any maintenance in your space.
Modified-net lease: As a tenant, you will split expenses with the landlord. The terms of this type of lease can vary depending on landlord and tenant.
What should you keep in mind as you look at a lease?
Now that you have done your research, you are ready to look at spaces. You can start by checking out listings. You may want to drive to sites on your own to scout out the locations before requesting a walk-thorough of the space. It may be in your best interest to inquire on the spaces you are interested in by calling the listing agent directly through the number on the property listing.
As you look at the lease, keep an eye out for these items:
- Consider the length of your lease.
- Research comparable rental rates in the area.
- Examine the least for any possible hidden costs—keep the type of lease in mind as you do this.
- Consider any clauses to the lease and request modifications that may be beneficial.
- Consider a termination and/ or break clause so that you are covered for any future issues.
It may be beneficial for you to talk to current tenants if available. Check online for any reviews or filed complaints. The location of your business will be a key factor to its success. The right location makes a big difference.