While many businesses operate in an online capacity, there is still a call for good old-fashioned real estate. Whether this is for storage purposes or a shop front, the commercial lease you sign up for can be pivotal to the success of your company.
Many commercial agreements go according to plan and both parties to the contract reap the rewards. Unfortunately, this isn’t always the case and disputes can arise. Outlined below are some important factors to consider.
Rent increases
It is fairly common for a commercial lease to contain provisions related to rent reviews. Reviews may be carried out at specified intervals, with a view to raising the rent accordingly. These terms can vary. For instance, a fixed rate may be agreed upon or the rate may vary depending on how much profit the company is making. In any case, it’s vital that the commercial lease spells out the terms clearly or disputes will arise.
Lease renewals
The lease is working out well for your company and you’d like to renew it. The problem is that the owner doesn’t want to and is looking to sell the plot instead. What are your rights in this situation? Can you simply be kicked out of the space that has been working out so well for you?
At the same time, you may want to get out of a lease that isn’t working and the landlord has the opposite view. Do you have to stick around for the entirety of the lease? Is there a way that you can get out of it without losing too much money?
Before committing to a commercial lease it’s important to be aware of your rights. Seeking legal guidance before making any big decisions will serve you well.