What to consider before signing a commercial lease
August 14, 2018

What to Consider Before Signing a Commercial Lease

When making a decision as weighty as where to operate a business, it’s vital to have a thorough understanding. Go in with both eyes open and be aware of any potential problems before they arise.

A lease is not something that should be skimmed through and signed. Hidden terms, fees, and limitations that might not be immediately apparent can come back to haunt you later. Make sure you understand a lease well before you sign.

Consulting commercial property lawyers is always the best way to guarantee you get the best terms. Lawyers will know how to spot any problems and help you choose the right property for your business.

Know Your Rights

With the help of a good commercial property lawyer, go through your contract line by line. Pay close attention to the rights of both landlord and tenant. Understand your respective obligations.

If there are any special terms or unusual clauses in the lease, be sure to clarify the exact meaning and implications with both a lawyer and the potential landlord.

Although moving out is the last thing you think about when choosing an office, read that section carefully. Know exactly how long your lease lasts, what the procedure is once it expires, and if there is an option to renew.

Rent and Fees

Speaking of rent, find out how the weekly or monthly payments are calculated. Compare the price to the area average. Research what neighbouring office spaces cost. Confirm that you are getting a fair price, and if the rent is unusually high or low, figure out why.

Ask how much the deposit is, and whether or not parking spaces are complimentary. Check for any other hidden fees. Extra charges here and there can really add up.

Permitted Use

Most importantly, double-check you can actually use the premises for your type of business. Some spaces have restrictions on usage that could interfere with plans, both present and for future growth. Also, consider if the restrictions are too tight and will make it difficult to transfer the lease to someone else if necessary.

To best answer these questions and make certain you have a full understanding before signing on, consult commercial property lawyers. We at P&B Law are happy to answer your questions and ensure you find the right Melbourne area office for you.