It takes months and sometimes even years to transform an idea into a reality. Additionally, registering your business to find the right facility or equipment makes the process even more time-consuming. But once you find the prime spot for your business, you often feel the urge to sign the lease right away. However, you need to stop right there. Why?
Because signing a commercial lease is not similar to that of a residential one. There are many complex terms and nuances that you might be aware of. As a result, experts often advise consulting a skilled lawyer when drafting a commercial lease paper.
If you still think you can work on the terms on your own, keep scrolling to understand why it is a bad option for your business.
Letter of Intent Misses The Points Discussed Before
Like any other lease, some points are discussed within the tenant and landlord regarding the monthly rent, square footage, renewal timeline, deposits, and other related allowances. All of these points are often drafted in a letter of intent. However, sometimes it’s not like that. Having a lawyer by your side will help you to browse through all the details of the contract. That way, you can confirm its accuracy.
The Misinformation About The Space Usage
With a commercial lease in place, you will be informed legally about the activities you can go for with the said property. However, most tenants miss out on these little terms and often land themselves in some legal issues.
For example, if you are opening a restaurant in Philadelphia and want to sell some additional items with your logo, add that in your commercial lease agreement. You can take help from real estate lawyer in philadelphia, who’ll help you add the “exclusive use” clause to avoid any future implications. Otherwise, your landlord might prevent you from doing so. And that could hamper the growth of your business.
Sharing Space Expenses Can Turn Out Costly
When you lease a building for your business, you are expected to share the cost of parking, security, electricity, or any other related utilities. All these bills can take a toll on your finances. So, a lawyer can help you find relevant measures that will be feasible for you in the long run. For instance, you can insist on including fees based on the percentage of the area you will be leasing. Your lawyer will help you with all the legalities and intricacies that go into the final lease agreement.
Terms and Conditions Might Not Always be Favorable
Not every landlord thinks about the profits of their tenants. For instance, landlords often tend to include personal guarantee clauses. In that case, you will lose all the protection that your business might provide. So, you end up having many liabilities in terms of property damage, unpaid rent, or others. However, if you have a lawyer, he/she can help you negotiate the final terms and conditions that will land you in a much better position when occupying a property.
In the End
A commercial lease is an agreement where a business and a landlord come together to allow the tenant to use the property for their business. However, you might miss out on terms under dispute resolution or other modifications when signing a commercial lease. So, hiring a real estate lawyer will help you protect your interests and make sure everything complies with laws and regulations.
