In Australia, advisory services have grown rapidly, due to a risk-averse business climate. With 33,348 businesses in Australia in the accounting space, there’s certainly no shortage of finding an accountant for a business. If you are looking to expand a home-based accountancy service or move into commercial premises, you should carefully review your commercial lease. The commercial lease that you execute and sign on behalf of your business will have long-lasting effects upon the way in which it is run. A clear and concise commercial lease can give your accounting business an edge over the competition. Accountants also require large offices to accommodate staff and provide facilities, such as meeting rooms, for clients. Fitout clauses for such meeting rooms should also be included in commercial leases.
Commercial Lease Terms for Accounting Businesses
The first legal consideration you should be aware of for your accounting business is the term of the commercial lease. The minimum length of a commercial lease is approximately five years. However, there are examples of commercial leases being either significantly longer or shorter with an option to renew. The length of the commercial lease that you enter into should be entirely dependent upon your business plan. Also, you should have at the forefront of your mind the consideration that the length of time you enter into on behalf of your business is final. As a result, you will not be able to shorten the length of time if the business is not going well, and if you are unable to continue running your accounting business from the property, the lease will still have to be paid or a significant fee paid to cancel the lease.
You should keep in your consideration that a commercial lease could be lengthened through an option to renew. Therefore, before you enter into a commercial lease on behalf of your accounting business, you should consider when and for how long you wish to renew the commercial lease.
Use of the Premises for Accountants
Before signing the commercial lease for your accounting business, you will want to ensure that it provides that the property may be used for the use that you require. However, you should also consider the future of your business before you sign the commercial lease, as there could be a possibility that you will want to change the primary use of the property were you to expand your accounting business. Furthermore, if you were to use the property for a purpose other than that specified in the lease, you would be in breach of the lease, which would potentially give the owner the option to cancel the lease entirely.
Many successful home-based accountants choose to expand their business into commercial premises. It is important as a business owner to consider the term of the commercial lease, as it will dictate how you will both run and grow your business. In addition, the option to renew will prove valuable when it comes time to grow your business, and the timing of this option should be considered carefully before signing the commercial lease. Furthermore, the use of the premises is very important in ensuring that your business is able to grow and function in the way that you imagine. If you have a commercial leasing question, or enquiries about growing your business, get in touch with our business lawyers.