Commercial Leases in Vancouver
Signing a commercial lease is a big step for your small business. A lot goes into this process and it is important that you have all of the necessary information before signing. Here are some important factors you should consider after you have found a property that you like.
Seek legal advice
A small business lawyer can assist you in many ways when it comes to starting up your small business and maintaining it. This is especially true when it comes to negotiating and drawing up contracts. A small business lawyer will not only get you the best deal possible, but he/she will also ensure the terms of the contract provide you and your business with protection.
Negotiate & get it in writing
It is important that you negotiate favorable terms. Once you and the landlord have come to an agreement it is critical that you get everything in writing. This means the terms will be binding and it will provide protection if you end up in court. The following are some elements that should be clearly laid out in the lease agreement…
- Full name of the landlord in case of legal trouble in the future.
- Whether it is your name or your company’s name that is being used. This will determine if it is your personal responsibility to meet the terms.
- The agreement should clearly lay out the start and end dates for the lease
- It should also indicate what the monthly rent is and which day the payments are due.
- This should also include discussion of late payments and whether there is a late fee.
- There should be terms which indicate whether the lease is renewable.
- You may also want to sublease the property, so it is important to ensure that an option to do so is stated in the terms of the agreement.
- It is also important to make note of any tenant improvements (TIs), repairs and how they are handled.
- Indemnifications and guarantees
Understand the terms of your lease agreement
Before signing an agreement, it is important that you understand exactly what has been agreed upon.
Do not settle
You may enter into negotiations after finding a property that you love but it is important to keep in mind that you are not required to sign the agreement. It is your business at risk so you should be extremely careful and only sign if the terms are favorable to your situation.
Signing a commercial lease agreement is an important step when starting up your small business. It is therefore really important that the agreement put in place is fully understood and favorable. f you have any questions or concerns about anything related to your small business, you can leave a comment below or call in to book a consultation.