The possession of a property is a great way to earn money by renting it or leasing it. Similarly, when someone is trying to situate a business; space or the commercial address must be acquired for a proper settlement and running of the concern. Now, to do business in an already acquired and self-owned property is easy, but not everybody has that kind of budget or previous properties.
The use of commercial spaces is a usual norm, and therefore, the leasing of the places also is quite a standard practice. This is quite evident in the statistical data of Perth, the Australian city, where is 2019, the average incentive levels for commercial space is nearing 50%. Therefore, a legal agreement must be in place between the leaser and the client, and contacting the most experienced and best property lawyers Perth for the legal matters will be an intelligent decision, for both parties.
Taking The Right Steps
The need for commercial space for business is a sure-fire thing and as a tenant, you must be careful to not get the short end of the stick. The landlord will try to get the most value of his property, and you have to understand your rights, your limitations, and the features you are getting with the property. Asking for a modification of the agreement according to the law in place is your right, but that also requires a thorough knowledge of the real estate laws. If you do not have such awareness, then you should hire a lease Dispute lawyers to get the most out of the agreement. The fundamental points you should look about are:
- Know The Time Period
The basic steps of acquiring a lease on a real estate are somewhat similar in all respects; the location for lease has to be determined, an application must be placed with the appropriate authorities and the filling pot of the correct forms for your lease. Herein, you must determine the length of your stay on that particular property.
If you think you can relocate to another more favorable location within a short time, then the length should be kept short, with an option of renewing after the period ends. This is beneficial for you, in case the rent changes or the location does not suit you. However, if you have a business that is dependent on location, like an eatery, then a longer lease would the way to go.
- Take A Good Look At The Agreement
An agreement is a very important thing when you are going for a Commerical property for lease. Try to read and understand the agreement completely before putting your signature. Taking the help of a real estate lawyer is not a bad idea. The landlord will probably increase the rent after each year. Determine the rate of increase beforehand to ensure the continued stay at the place. Before going for a specific property, research and look around for comparable rents. This will be important in the negotiation of the charges. Have a clear talk about the utility bills, the usage of essential services, and the charges to be paid for them. Have a discussion also about the security deposit and the conditions and amount to be returned upon the completion of the tenancy period.
- Find Out The Hidden Costs
There are two types of commercial lease done within the parties; an agreement where all costs are included, which is known as a gross lease, or an understanding which only mentions the upright costs like rent and other bills, but the tenant has to pay for extra services present, known as a net lease. Keep your eyes open for such hidden charges. In many commercial lease agreements, the tenants are charged for the maintenance or the repairs of the common areas. Be very clear about these conditions and negotiate the charges which become the best for your company.
Find out if your lease requires any system maintenance, if it does, then find out the current state of the systems. This will help you in finding the correct rate of rent, as the additional cost can be factored in the negotiations for the lease. For the electricity or water bills, know beforehand if there are separate meters or the total cost will be divided by the tenant(s) residing in the property.
- The Clause Of Termination
This matter is one of the important facets of commercial lease negotiation. A well-informed lawyer will advise on this part very carefully, as this condition and its handling can be instrumental for you to rent other properties in the future. Keep provisions for the defaulting and termination earlier than the agreed term. If you can, go for extra time to clear your lease default notice before eviction, like paying an extra month’s charge than the whole amount mentioned in the lease.
Also, negotiate the amount you need to pay if you terminate your lease before the time agreed upon. Looking over these particular matters beforehand will save a lot of money in your fulfillment of the agreement. Check also that if you have to restore the property into its original state before leaving it. If you cannot do this by yourself, hire the best lawyers who understand and deal with the matters of the property and commercial lease.
- Negotiate For Advantageous Terms
Usually, the cost of a commercial real estate is quite high, and therefore, as a paying client, you must ask for and achieve conditions that favor your business. Ask your landlord to put up clauses that allow you to put up a sign of your business. You can even put in a clause that prohibits the landlord to rent any space to a company doing similar business on the property. Choose, read, and place your conditions to the agreement carefully.
Getting the correct bargain on the commercial lease is a business well started, and therefore the agreements have to be succinct and error-free. To ensure a professional job, call upon and let the best real estate lawyers work your case; so that you can enjoy the perfect deal on the commercial lease of your business.