When it comes to getting what you want in a commercial lease arrangement, the time to act is before you sign. With so many details involved with negotiating a lease, it can be hard to remember all of the points you should cover.
However, missing even one crucial point can increase the likelihood of disputes and litigation down the road. Here is a list of some essential points to cover when writing your lease.
Negotiating rent seems like an obvious point, but there are some finer rent details you need to explore before you finalize your lease. One point to iron out is the amount of square footage that the landlord uses to figure your rent. Also, you will probably want a provision that caps your rent increases during your lease.
Clarification of Property
It may seem natural to you to have access to certain building amenities such as common area bathrooms and break rooms, but there is no guarantee to use unless your lease outlines it. Also, you may want to make sure there is a clause in your document that stipulates what activities can occur in the leased area. A broad usage clause should be sufficient and not expose the landlord to any additional liability.
It’s your responsibility to ensure that your business is fully compliant with the Americans with Disabilities Act (ADA). The lease you negotiate with your landlord needs to state whom will pay the cost of any modifications.
If you’re planning a retail business, it is of utmost importance to make sure that there is an exclusivity clause in your lease. This type of clause will keep your landlord from leasing to someone that would directly compete with your business.
Your lease document should completely outline the conditions you need to meet to receive your security deposit at the end of your lease. With some prior planning, you can make your lease duration as smooth as possible.