Signing a commercial lease as a business owner should not be taken lightly. A business owners' biggest expense may be a store-front or office space when they are first starting out. Like any contract, it may be too late to make any changes to a commercial lease once you've signed it. A commercial lease is a legal, binding document that may prevent you from growing your business - or worse, run it into the ground. Here are four simple things to consider before signing your commercial lease.
1. Read the lease and understand it. This sounds simple enough but it has to be said. We all know reading through a lease agreement is tedious and boring but you have to be aware of what you're getting your business into. What are you getting? What are the terms of the lease? Who is responsible for what? What happens in situation A/B/C? There are many conditions and terms that are included in a lease and they may potentially affect the way you operate your business. You must be agreeable to all of these terms before signing.
If you're still confused about some of the terms, here's an article on Common Commercial Leasing Terms Explained by thebalance.com
2. Negotiate. Just because the landlord has used their lease with all of his other tenants doesn't mean you are not able to negotiate. Make sure to make a list of any provisions you disagree with and see if you and the landlord can come to terms. It might surprise you how much they may be willing to change. However, you have to be realistic as well. If your space is much less than the other tenants, the landlord may be less likely to budge on some terms than if your lease was a quarter of the entire property or more.
3. Make sure your business structure is in place. Don't put the cart before the horse here. Make sure you've established your Nevada entity before signing a lease. You can't be protected by your corporate shell if it doesn't exist. Forming your business entity on the backend may just make things messy and may cause problems for your business and your landlord in the future.
4. Get advice before signing your lease. Getting advice before signing your lease is often overlooked. A consultation with a Nevada contract attorney before signing your lease can save your business time and money in the future. There are many hazards in a commercial lease and consulting with legal counsel should always be at the top of your list when you're in need of clarification.
Starting your new business and signing leases can be daunting for a first time business owner. With some patience and due diligence, any business owner can set up their business for success. Feel free to contact our firm with any questions or concerns related to your commercial lease.