When first jumping into the arena of having one's very own business, it's not likely you might do so with no a place to operate from, whether it be an office, or a retail shop or factory. Now there will be obvious exceptions, by way of example, internet businesses - however generally speaking this statement holds true. My intention in this article is to outline for you two matters to consider prior to signing your lease agreement.
I am a professional lease solicitor (Melbourne) who often advises valued clients in relation to lease conditions. I possess the main advantage of being familiar with both the landlord and the tenant standpoint. I also have people come to me troubled concerning their specific circumstance which may happen to have been averted had these people obtained suitable legal counsel before entering into a lease arrangement.
Firstly, the length of your lease should be carefully considered. I would generally suggest to a small business start up that a short term lease with many option periods is ideal. Three years is more than enough, but many landlords will permit much shorter lease terms if they are requested. Many terms in leases are negotiable so never be afraid to ask. Your solicitor can be helpful in negotiations if you are want to have someone to negotiate on your behalf. Locking yourself into a three, four or five year lease is unwise. This will be less of a problem if the business grows quickly and needs to expand but there will still likely be a considerable cost. Avoid being lured in solely by apparently inexpensive rent or a rent free period only.
The second thing is, instruct your lease lawyer (Melbourne) to certain that there exists an "early termination" clause in your retail lease contract. It is a clause that might be included to ensure that if your new enterprise is not flourishing and you just really desire to shift buildings or maybe shut down your enterprise, you will be able to get out of the lease. Break conditions are generally never volunteered by the landlord but could often be included becoming a special condition after asking as a component of a comprehensive offer to a new landlord.
Finally, remember that you are entering into a binding arrangement - you can't change your mind half way in without probably costing yourself a lot of money. Distance yourself from the excitement of your new premises. Negotiate your lease as you want it to be from the start.
Leasing commercial premises is a necessary part of running a business. The content of this article is informational only and you need to get competent legal advice for your specific circumstances from an experienced lease lawyer melbourne.
I am a professional lease solicitor (Melbourne) who often advises valued clients in relation to lease conditions. I possess the main advantage of being familiar with both the landlord and the tenant standpoint. I also have people come to me troubled concerning their specific circumstance which may happen to have been averted had these people obtained suitable legal counsel before entering into a lease arrangement.
Firstly, the length of your lease should be carefully considered. I would generally suggest to a small business start up that a short term lease with many option periods is ideal. Three years is more than enough, but many landlords will permit much shorter lease terms if they are requested. Many terms in leases are negotiable so never be afraid to ask. Your solicitor can be helpful in negotiations if you are want to have someone to negotiate on your behalf. Locking yourself into a three, four or five year lease is unwise. This will be less of a problem if the business grows quickly and needs to expand but there will still likely be a considerable cost. Avoid being lured in solely by apparently inexpensive rent or a rent free period only.
The second thing is, instruct your lease lawyer (Melbourne) to certain that there exists an "early termination" clause in your retail lease contract. It is a clause that might be included to ensure that if your new enterprise is not flourishing and you just really desire to shift buildings or maybe shut down your enterprise, you will be able to get out of the lease. Break conditions are generally never volunteered by the landlord but could often be included becoming a special condition after asking as a component of a comprehensive offer to a new landlord.
Finally, remember that you are entering into a binding arrangement - you can't change your mind half way in without probably costing yourself a lot of money. Distance yourself from the excitement of your new premises. Negotiate your lease as you want it to be from the start.
Leasing commercial premises is a necessary part of running a business. The content of this article is informational only and you need to get competent legal advice for your specific circumstances from an experienced lease lawyer melbourne.
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To read more about retail leasing, or to seek legal advice, check out: Lease Lawyer Melbourne. To read additional articles or blog posts about commercial leases contract, visit Lease Lawyer Blog.
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