Entrepreneurs who have never rented or leased commercial property can fall prey to unfavorable terms when looking for business space. Now that you are gaining traction as a company, poor lease terms could slow your newfound success.
Fortunately, you can avoid terms that might harm your business operations when deciding on commercial property. Many people find it helpful to learn which lease provisions cause other entrepreneurs to look elsewhere for business space.
Imprecise expense calculations
Every element of a commercial lease should contain precise language and mathematical calculations — especially details about your financial obligations. If the other party will not cooperate or suggests that you “work it out later,” you might want to continue your search.
Study the agreement carefully to ensure it does not contain terms that benefit the property owner exclusively. Unfortunately, unbalanced provisions are often hard to spot. Consider having a real estate representative review the document before signing.
Unclear landlord responsibilities
Commercial leases should contain details about the obligations of all involved parties. Leases that fail to define property owner or landlord responsibilities could mean trouble if maintenance or structure-related issues arise.
Typos and errors
Consider it a red flag if the lease contains typographical mistakes, grammar errors or is overall sloppy. If the other party cannot bother to exercise care in drafting a legal document, other parts of the lease may also be questionable.
As an entrepreneur expanding your reach in the New York-New Jersey region, you have much to consider. General legal counsel, especially during real estate transactions, ensures you make sound decisions that do not harm your business.