Often the lease of premises that goes hand in hand with a business is one of the most critical documents in terms of the value of that business. This is because that often businesses rely on a customer base which is geographically driven to that business. Therefore, the negotiation of your lease for your business premises is something that should be done very carefully. As a starting point, these are a few important items that you should discuss with us in regards to the lease documentation:
- Duration – how long does the lease have to run, how often can you renew it, and what are you potential liabilities connected to those periods?
- Rent Reviews – When can the landlord increase the rent and by how much?
- Operating Expenses – What operating expenses are you liable for?
- Re-instatement – What are your responsibilities to re-instate the premises at the end of the lease?
- Inducements – What up-front benefits are you negotiating such as rent-free periods or fit-out contributions
- Guarantees – What liabilities are you guaranteeing and how can you limit those?
Prudentia Law believes it is extremely important to take time to evaluate and consider the lease options you have because they can be integral to the profitability of your business while you own it and also the saleable value when you come to sell.