Whether you have offices on the pent suite of a skyscraper in London, or have a factory on some backstreet in Manchester, asides salaries, the lease on your company’s premises is likely to be one of the biggest expenses your business has to pay out.
It is within every business owners’ interest to save money wherever possible and none more so then when it comes to lease contracts on premises. If you believe that you are paying too much for your company’s premises, or are starting out and want to secure a good deal, you may welcome the following tips on how to negotiate the lease terms of your premises.
Establish your requirements
To avoid the potentially nightmarish possibility of hiring out premises on a 12 month contract only to find that they are too small for your requirements, it is essential that you establish your necessities before you start looking for premises.
Write down your requirements and when you visit each building, jot down whether it ticked all the boxes in terms of what your business demands will need.
Before you sign on the dotted line for a commercial property lease, it is wise to find out the flexibility of the terms. Leases without any kind of flexibility are not generally advised, as issues such as being unable to negotiate any changes in the terms, may mean that, as your business grows, the tenancy deal you originally signed up to is no longer suitable.
Use a draft lease agreement
It is not uncommon for commercial property landlords to briefly describe the most obvious terms of a deal in order to try and lure you into signing the contract. In order to be informed about all the provisions of the lease it is important that a draft lease contract is drawn up so that you are have a more comprehensive understanding of the lease.
Be wary of short-term leases
A typical commercial property lease runs for approximately three years. If a landlord is offering you a short-term lease of 12 or 18 months for example, it is wise to proceed with caution, as given the costs of letting, it isn’t usually within a landlord’s interest to let their premises for less than three years.
Set ceilings on rent increases
You are entitled to negotiate the terms of your business premises lease and, in order to save money, it is advisable to negotiate aspects of the deal that could potentially save you money, such as placing ceilings in how on increases of the rent.
[author ]Guest blogger Gemma Shardlow wrote this article on behalf of www.lawexpress.co.uk, experts in business, property and telephone legal advice.[/author]