Learn What To Expect When Leasing A Commercial Space For Your First Business
Posted on: 1 September 2016
Being able to open an independent business is a dream that many entrepreneurs have. If you are an entrepreneur who is interested in opening a brick and mortar business, there are a few things you need to know before renting the first available commercial space you see. The guide below walks you through a few tips to ensure that you know what you are getting into when leasing a commercial space so that you are properly prepared for the experience.
Not All Commercial Spaces Can Be Remodeled
There are some commercial property owners who do not mind if tenants remodel the space that they are leasing and some who have strict guidelines about what can and what cannot be changed within the space. If you need to have a space with multiple small rooms, add shelving for displaying clothing, or may need to make any other change to the space in order for it to be conducive with your business, you need to make sure that the landlord of the building is okay with the changes before doing them.
The Utility Costs Are Not Included in the Leasing Costs
When you lease a commercial property, the cost for electricity, water, and sewage are often not covered in the amount you pay to lease the property each month. This means that you will be responsible for having everything turned on in your name and paying the bills for the utilities each month. You need to account for these costs when determining the budget for your business to ensure that you can afford the cost for the lease and the cost for the utilities before agreeing to lease any commercial space.
Consider the Length of the Leasing Agreement
When you are first trying to establish a new business, it is best to sign a short-term lease agreement so that you can determine if the location of the space is right for your business. If you do not see a lot of foot traffic coming into your business, the location of the space may not be right for the services you are offering or the merchandise you are selling. Having a short-term agreement will allow you to move your business if you need to without having to break a lease agreement.
It is important to read every word of a lease agreement before signing it. This will ensure you know what the landlord expects and know that you are confident that you will be able to meet the expectations before you bind yourself to the contract. For more information, talk to a professional like Hartman Income REIT.
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