A strategic location is one of the essentials of starting a business. That’s why most people would install their shops in central business districts or other areas where their target market is present. However, the rising commercial property prices make such an endeavor challenging.
Renting commercial space is usually the practical option for those who set up a business with a limited budget. However, it takes more than a verbal agreement to negotiate a lease. If you’re planning to draw up a rental agreement for a property in Denver, business lawyers usually ask for the following things to be included in the document:
Duration of Rent
Some people set the duration of the rent longer than the lifespan of their business. Thus, they end up paying and losing money even after their business has folded up.
There’s no certainty if your business will remain long in a certain location. Lease the property for around 1-3 years along with the option for renewal of contract. This is to give you more freedom to come and leave the property based on your business’ performance.
Coverage of Cost
Rental costs may increase during the leasing period. Negotiate a fixed rental payment period before the increase takes effect. Furthermore, set an amount or percentage of rental fee increase you’re comfortable with.
Some property owners share expenses with tenants, including utilities, insurance, maintenance costs and taxes. Ask the owner about the costs and the extent of your role in the property’s upkeep. Also, include the terms regarding the property’s upkeep that you’re willing and able to shoulder in the document.
Some businesses require room adjustments or additional equipment for operations. These require approval from the property owner before the leasing agreement takes effect.
If your venture requires such, state all those particulars and costs of those additions in the document. This will help prevent business-related disputes with the property owner in the future.
There are many things to consider when renting a commercial space for your business. That’s why it’s better to have lawyers during the process. They can help explain and carry out the legal procedures, giving you more time and energy to focus on your venture.