Hello there young business people! Are you a small or a medium scale businessman recently establish and found out that you need an office space to operate from? Well, you’re not alone! There are many like your businesses that are out there in search of perfect premises to rent or lease. However, you couldn’t and wouldn’t plunge into the property leases universe and that’s where the concepts come in. In this article, which will take you about 10 to 15 minutes to peruse, you will learn all you need to know about property leases and SMEs. So, let’s get started!
Understanding Property Leases
Hey there, eager beavers! Well, let’s assume you are over the fact that you need a property lease, now what is this? A property lease is an agreement between you and the property owner in which you have agreed to use the property for a given number of years in exchange for a consideration. It is a legal document, which utterly means enforcing the content of the document, so it is essential to understand all comprehendible. Over the subsequent sections, we will outline the facets of a property lease that are unavoidable to any kind of property rental business.
Lease Term
Hey there, time-travelers! And when it comes to property leases, the lease term is the amount of time you need the space to be rented. You can select a period from one month to one year and even several years. And the last one should be chosen according to your needs on the market of your business.
Rent and Additional Fees
Hi, money-minded geniuses! They mean the cost to be paid to the owner of the property per month or year is called the rent. But wait, there’s more – you could be responsible for other charges like, utilities, maintenance or property tax. These are costs that you need to clarify in terms of range and incorporate into your business expense plans.
Responsibilities of Landlord and Tenant
Hey there, team players! A property lease defines obligations owed by both the property owner and its occupant. The responsibilities of the landlord normally lie therein in the return right, where he is bound to maintain the property, maintain safety standards, and effect insurance. The rights mean that the tenant is responsible for cleaning the house or space, paying rent at the correct time and adhere to requirements provided by the landlord.
Legal Considerations
Hello, law-abiding citizens! Leases are legal agreements thus once in them, you must fully understand what they entail as a tenant or a property owner. Below are some of the legal considerations you should take care of whenever you are signing a property lease.
Lease Clauses
Hi, detail-oriented folks! Lease clauses are sub-categories of provisions of property lease deal that convey the further details of the contractual relations between the parties. The pillars that you should consider are the renewal options, the subletting term, and the early termination.
Zoning Laws
Hello, rule-followers! Zoning legislation is interpreted as a legal regulation that describes the allowed usage of land within certain geographic region or area. Ensure the property you are leasing is in the right use zone for your kind of enterprise. If you dare to break these zoning laws, you could be liable to fines or the complete shut down of your business.
Insurance
Hey there, cautious souls! For a business to be able to exist, it needs liability cover that compensates it if losses arise from theft, damage or even injury. It is important to be aware of this requirement before getting into a property lease, because a lease might include provisions which insist on certain insurance coverage being taken.
Choosing the Right Location
Greetings, wise investors! Location is an equally paramount factor in business and therefore selecting the right place for your business is crucial. Here are some points that a person should look for when looking for property lease.
Accessibility
Hello, easy-reach dreamers! In the modern economy, two main factors that could help firms get their customers are accessibility. Select a place with clear access points and good access by several means, car, bus, or walking.
Demographics
Hi, trend-setters! Demographics of the market is important in determining the location of the business. Look for locations with density of your target market and which fits your business model.
Competition
Hello everyone, the battle royale fighters! Nonetheless, it essential to know or rather recognize how competition operates or impacts your business endeavoring. Big picture out, analyze the competition in the area and look for an opportunity to establish your USP.
Preparing for the Lease Agreement
Greetings, prepared minds! Leasing a property is a big decision and you want to make sure that all the conditions are met before making the lease. Below is a check list of things that you need to consider when going into a lease agreement.
Conduct Due Diligence
Hello, diligent detectives! Before entering into a lease agreement do some background check on the owner of the property, the property, and any foreseeable complications. You can also enter the public records database and read as many online reviews as possible to know more about the area.
Negotiate Lease Terms
Greetings, all you masters of the art of haggling! Flexibility should not be a problem when it comes to negotiating the lease terms to suit one’s business. The nature of the relationship between the parties determines what can be negotiated, this include the issue of rent, other charges or even the period to be taken for leasing the property. What is important to remember that you must know your value and what is possible in the market.
Review the Lease Agreement
Hi, meticulous mavens! Examine the lease agreement with a fine tooth comb before agreeing to enter into the lease. Do not accept the use of any clause, term or condition that you are not familiar with. If you have any questions about your tenancy agreement, you are welcome to clarify that with your landlord or a lawyer.
Conclusion
Hello there, the small business owners out there and anyone who is running a business. Management of property leases is an important element in the successful execution of a small or medium scale enterprises. By masterfully reviewing property lease, legalities and selecting the perfect spot, then, you would be in the process of getting a perfect spot for your business well covered. The main advice you should never forget remain a wise one: always sharpen your knowledge, do not hesitate to ask questions and never be afraid of bargaining. Wish you happy leasing and all the very best for your business venture.
