Commercial lease or lease of business space is a step every entrepreneur has to take unless you have free options to house your business. Finding the perfect commercial space can be a real struggle and, in some cases, may take years to find what you are looking for. But whether you are a new business owner opening a store or changing locations and moving office, once you find that space, you need to legally define the lease.
When leasing commercial space or any space for that matter, you have to sign a lease agreement. And when it comes to lease agreements, it is important to get a lawyer to look over the head of terms, lease and any other documents the landlord requires you to agree to. Getting good advice early on is crucial. And that is why at K&K, we offer commercial lease reviews.
What is a commercial lease agreement?
A lease agreement is a legal contract between the owner of the premises/the landlord and the business entity or company that leases the premises, the tenant.
A lease agreement should include specific elements and key information. These could be any of the following:
- Information regarding the rental cost
- Security deposit
- Lease duration
- The date tenancy starts and ends
- Building insurance
- Property taxes
- Maintenance costs
- Name of both parties
- Address of property
Before signing a lease agreement, it is crucial to do extensive research not only to avoid overhead costs but to make sure the agreement is valid and enforceable. In some circumstances it also a good idea to carry out searches.
When is the right time take on a commercial lease?
The commercial property sector was somewhat stagnant and, like many businesses during the Covid-19 pandemic, faced uncertainty. With the loosening of Covid-19 measures in the last few months, we have seen a big increase in businesses taking on commercial premises such as units and offices.
This is rather encouraging as seeing things getting back to normal is what we all long for these past two years. Seeing that more and more companies are looking to lease business space is a positive step meaning there will be new job opportunities too.
So how do you know when is the right time to move into office space? Here are the telltale signs that you need to rent commercial space:
- You are planning on expanding and adding staff
- Changes within the industry
- Unhealthy environment
- You want to appear more professional
- You can commit to a lengthy lease
- Running out of space
- Need a fresh start
If you ticked several points on this list, it’s time to look at moving to an office or unit. But if you only ticked one or two points, then you need to look at other options, such as coworking space or start your planning to move in a year.
When is the right time to buy or lease commercial property?
If you haven’t been down that road already, you should at least know that owning a commercial property is more economical than leasing in the long term. But commercial leases are ideal for businesses that are just starting or can’t afford to buy property just yet.
Policies to consider as a business
As a business, you must have a really good understanding of the purpose of policies and how they can help protect your business as it grows. We talked about this in one of our previous blogs, so to better understand what policies you may need and why they are important, take a read at our blog here.
In a nutshell, your business must have or should consider incorporating the following policies:
- Grievance & Disciplinary policies if you have employees
- Health & Safety Policy
- Data Protection Policies
- Equal Opportunities Policies
Get professional legal help
Commercial property law can be quite the challenge for non-legals. If you are planning on renting business space or if you have any questions related to commercial lease, please don’t hesitate to contact us. We can help with your lease and other legal concerns.