Tips On Obtaining A Lease For Your Business

When obtaining a lease for your business premises, be prepared to negotiate. The landlord�s printed lease will most always favor the landlord. Match the lease to your business needs. If location is important and this is the right location, you will want a longer lease. Long leases favor the tenant. Of course, a shorter lease with options to renew will do the same. Generally, when leasing you should be looking at least at a 10-year period, whether a 10-year lease or a 5-year lease with a 5-year option. Try to avoid personal guarantees at all costs, but if you must give a personal guarantee, negotiate a limited personal guarantee. The key question here is what direct improvements or investment is the landlord making for you to take physical possession of the leased premises. Know who pays for utilities, repairs, insurance, refuse removal and taxes. Are there any common area charges? Are there any escalations in the lease? If so, you will want to be sure they are capped. Exclusivity; you will want to be the only one of your type of business located in contiguous property owned by the landlord. Be aware of your negotiating power. If there is just one vacancy in a shopping center of 40 stores, your negotiating power is going to be a lot less than if there are 10 vacancies. Overall, remember that a lease is a legal document and can become a valuable asset for your business. Before signing a lease, always consult with Spiegel & Utrera, P.A. to review your lease.

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