As you grow your business, you may decide that it is time for you to have a physical store. Once you find the perfect location, you should consider several elements before you sign the lease.
According to Business News Daily, a commercial lease is a binding contract between you and your landlord. It usually includes all of the important information that you need to know about operating a business in the space. However, you should examine the terms closely.
Understand the cost
When you first evaluate a commercial space, you may only consider the rent. However, there are many other costs you need to evaluate. Some commercial leases require tenants to pay for maintenance and repairs. You may also be responsible for the utilities and insurance. Examine the lease carefully to understand which expenses you have to pay and which ones the landlord will cover. These additional expenses can greatly increase the amount that you spend each month. Sometimes, they may push a commercial space out of your budget.
Investigate the landlord
Before you sign the lease, you should make sure that you are doing business with a responsible landlord. You should usually do some research to gather information about your new business partner. Ask some of the following questions:
- Does your landlord own the building?
- Does the building owner have a history of keeping the building in good repair?
- Does the owner make mortgage payments on the building each month?
If a landlord does not have a history of being a responsible property manager, you may want to consider a different property. Your own business may be at risk if the bank forecloses on the building because the landlord or the owner has not made payments.
By doing careful research before you commit, you can make sure that your new space will be a valuable asset for your business.