Are you looking to start your own panel beater business, or expand your already existing panel beater business? If so, it is important that you are aware of all the legal considerations that arise when entering into a commercial lease. Entering into a commercial lease can be a daunting experience for any business owner, as the success of your business can depend upon the terms and conditions within the lease. The last thing you want to do while trying to grow your business, is have to deal with unforeseen issues surrounding your lease. Such issues can lead to insecurity for your panel beating business, thereby preventing your business from reaching its full potential.
What should I look for before signing a commercial lease?
Any special conditions
Owners of commercial properties can impose special conditions upon their occupants that require them to perform certain duties, regardless of whether or not these duties are in line with the occupant’s business model. An example of this is requiring an occupant to be open during certain hours of the day. As the owner of a panel beating business, it is certainly possible that such a restriction could be placed upon you. In addition, it would not be out of the ordinary for a commercial lease to attempt to encumber you with noise restrictions, or protocols when moving vehicles on and off the property. If you encounter any of these special conditions, it is always best to try and have them removed from your commercial lease. The last thing you want is to have to deal with arbitrary conditions within your commercial lease, while you are trying to run your panel beating business.
Conditions relevant to your business model
This concept flows on from special conditions. Some commercial leases relating to a panel beating business will attempt to impose conditions, which will directly affect how you do business. An example of this would be payment of the lease, such as if your business model relies upon monthly payments of the lease, but the commercial lease specifies that rent is to be paid fortnightly. Such a situation could leave you in financial difficulty, forcing you to take out a loan to cover rent that you would otherwise be good for, or default on rent for a fortnight, which would lead to strained relations between you and the owner of the property.
Another example of a special condition that can have a serious affect upon a panel beating business is noise management. If the commercial property is near a residential area, your commercial lease may often specify that noise is to be kept to a minimum, or as low as possible during certain hours of the day. Depending on the specifics of the condition, this could be extremely inconvenient, forcing you to start later or finish earlier than you would normally like, and always be conscious of the amount of noise you are making.
What should I do if I find these conditions in my commercial lease?
Before entering into a commercial lease, it is always advisable that you seek legal advice. This is not to say that you are unable to review the commercial lease for your panel beating business, in fact, you are essential in ensuring that the lease is suited to your business model. Therefore, you should review you lease in detail with a legal professional in order to ensure that you are both on the same page. From there you can ask your lawyer to remove the special conditions mentioned above if they are not suitable to your business model. The benefit of legal advice is that you can be sure that no condition has been missed that is important to your business, it provides added security that will allow your business to flourish and prosper. Click here to see how a legal professional can assist you with entering into a commercial lease.
If you are looking to start your own panel beating business, or expand your already existing panel beating business, it is important that you understand the legal considerations associated with entering into a commercial lease. It is important that you are aware of any special conditions that are included in your commercial lease, as they could have a drastic affect upon the way your business is run. Through seeking legal advice in relation to your commercial lease, you will ensure that your business is protected for the duration of the lease and beyond. If you have any further questions regarding the legal implications of a commercial lease, feel free to call LegalVision for a fixed-fee quote. LegalVision’s leasing legal team is always ready to help!