Are you looking to start you own electrician business, or expand your already existing electrician business? If so, it is essential that you are aware of the legal implications you will encounter concerning a commercial lease. Everything about your business stems from your commercial lease, as you need somewhere to store your products, equipment and vehicles, and even a shopfront for your customers. A poorly worded or imprecise commercial lease can leave your business in turmoil, while a clear and precise commercial lease can provide you with the stability that will allow your electrician business to prosper. Often the distinction between a good and a bad commercial lease is miniscule, and concerns a certain date here, or a certain word there. As a result, it is important that you seek legal advice well before you put pen to paper.
How will a commercial lease affect my business?
A commercial lease will affect your electrician business most directly by having an impact on your bottom line. Commercial leases cost money, however, some cost much more than others. If your commercial lease has clear provisions regarding rent and renewal, you will be able to calculate the cost of the lease well into the future. Alternatively, if your lease is ambiguous with regard to these matters, you will never truly be able to forecast your finances beyond a month or two. The difference between these two situations can be astronomical, for with financial security you will be able to expand your business and deal with any competition. Without this security, however, you open yourself up to competition and will be unable to safely expand your business.
In addition, when signing a commercial lease, you will be able to include what is called ‘an option to renew’. This will allow you to renew your lease before it is contracted to end. This will allow your business to have continuity, and will again allow you to project well into the future. However, a poorly worded option to renew, or an option with dates that do not make sense, renders your business model unreliable. If you are unable to renew your commercial lease, you will have pack up your business and leave. Such a situation would result in moving costs, as well as any costs associated with negotiating a new lease elsewhere, which would be detrimental to the growth and expansion of your electrician business.
Do I need legal advice when entering into a commercial lease?
It is always recommended, when signing any contract that is important for your business, that you seek legal advice. A commercial lease is no different. One commercial lease for your electrician business can span years, or even decades. In addition, a commercial lease will have significant impact upon the financial stability of your business for years to come. Therefore, hiring a lawyer at the outset in order to ensure financial stability into the future, is not so much of a sacrifice.
Moreover, it is important that you collaborate with a legal professional to ensure that the commercial lease that you sign allows your business to develop the way that you want it to. When it comes to a commercial lease, you should not leave everything to the lawyers. In fact, it is recommended that you have a hands on approach, as a legal professional will understand the law, but only you will truly understand the practical implications of each and every aspect of the commercial lease that you sign. Click here to see how a legal professional can assist you in creating a commercial lease.
Conclusion
If you are looking to start your own electrician business, or expand your already existing electrician business, it is essential that you are aware of the legal implications you will encounter when entering into a commercial lease agreement. A commercial lease is essential for most businesses, and will be a cost that you will have to bear for the duration of your business. However, it is important that this cost is as small and as predictable as possible. To ensure this, you should make the commercial agreement as clear as possible, and seek legal advice along the way. If you have any further questions relating to commercial leases, please feel free to call LegalVision for a fixed-fee quote.