Are you looking to start you own carpentry business, or expand your already existing carpentry business? If so, it is important that you consider the legal implications of entering into a commercial lease. A well written commercial lease can assist your business by providing you with stability, and allowing you to feel confident that the place you do business will remain in your hands for the foreseeable future. There is nothing more detrimental to either starting or expanding a business, than having to move premises as a result of a dispute over a commercial lease. As a result, the legal implications of a commercial lease will either allow your business to grow and prosper, or leave you with an unexpected burden that will be detrimental to your carpentry business.
What should I include in my commercial lease?
The two most important aspects of a commercial lease for your carpentry business will be the price of the lease and the length of the lease. However, before you even consider entering into a commercial lease, you should create a complete and thorough business plan. It is only after creating this business plan that you will know how much money you are willing to spend on a commercial property and how much time you wish to be in that property.
It should be noted that when it is time to focus on the cost of the lease, you should consider much more than just the rent. Firstly, you should consider when payments are made, whether it’s weekly, fortnightly or monthly. There is no set time period, and your business model should tell you which time period is preferable. Secondly, and arguably more importantly, you should determine when and how will be the best way for you to have the price of the lease revalued.
Commercial leases are often revalued at different stages throughout the duration of the lease. Although this may seem daunting at first, it is generally a pretty simple matter. However, if you are not expecting it, or it comes at a time of low liquidity for your carpentry business, it may cause some problems. Therefore, you should look towards your business model in determining when would be the best time to have this revalued. In addition, if this prospect still concerns you, you may seek legal advice regarding the matter.
After you have decided on the price of the commercial lease for you carpentry business, you should then bring your attention to the time that the lease will last for. Every commercial lease is different, and every business has its own view on what the best period of time is. As a result, you should again consult your business plan and decide on the time period that is best for you. It would not be recommended that the time period is less than three years, or more than five.
While this may seem like a short period of time, as we are talking about the entire future of your business, built within commercial leases is an option to renew. This means that at some stage during your commercial lease, you will be able to elect to renew the lease for an additional period of time. You do not want to have to wait too long for this option, as it may stifle your business through uncertainty, however, wait too long and you may find yourself in a difficult negotiating position when it comes to revalued rent. Once again, this is a judgment call, and while a legal professional will be able to assist you in deciding this, the final call will ultimately be yours.
If you are looking to start your own carpentry business or expand your already existing carpentry business, you must be aware of all the legal implications associated with starting your own carpentry business. The price and the duration of the lease are the most important aspects to be sure of in the beginning, yet these judgment calls can only be made following the creation of a sound business plan. It is certainly recommended that you seek legal advice during the process of creating and signing a commercial lease, as this will allow you to feel confident that all of your decisions are legally ensured. In addition, a legal professional will be able to use their expertise to assist you in making these judgment calls.
If you would like to see how a LegalVision contract lawyer can assist your business, please click here. Finally, if you have any question regarding the legal implications of commercial leases for your business, feel free to call LegalVision for a fixed-fee quote.
Was this article helpful?
We appreciate your feedback – your submission has been successfully received.