Are you looking to start you own plumbing business, or expand your already existing plumbing business? If so, it is important that you take great care in understanding all of the legal implications that surround a commercial lease. The commercial leases that you enter into forms the bedrock upon which you can build your business. Without a well-worded and legally sound commercial lease, it is very difficult to run a successful business, due to the fact that a poor commercial lease will mean that you’re constantly plagued with potentially ruinous drama, which could have all been avoided. A commercial lease determines where you do business, how you do business, how much you have to pay, when you have to pay and what you are able to do on the property. If any of these aspects are in dispute, your plumbing business could be damaged in both the short, and long term.
How can I avoid issues with my commercial lease?
The simplest way to avoid issues with your commercial lease, is to have a clear and concise checklist with regard to how you want to run your plumbing business. This will mean that from the outset, you will be able to lead the charge when negotiating with the owner of a commercial property. Far too often, negotiation with a property owner will become confused, as both parties will have vastly different views as to how the lease should be structured. With a checklist, however, this will not occur, as you will always know exactly what you require, and the owner of the property will be unable to confuse you into submission. So what should you include on this checklist?
An option to renew
The first consideration you should have on your checklist is an option to renew. An option to renew is present in most commercial leases, and provides the business owner (you) with the option to renew the lease before the original lease expires. This is vital for your plumbing business, as it provides it with the long term security necessary for it to grow and continue to compete with the competition. There is nothing more detrimental to the growth of a business than being forced to move property due to a failure to renew a commercial lease.
Another concern with the option to renew is that the option must be taken within a certain time period in order for it to be valid. The length and date of this time period are determined by you and the property owner. However, you should take great interest in the date and time period included, as it is your business that it will affect the most. You should not have it too early in the lease, as you will not be able to make an informed decision. Conversely, you should ensure that it is not too late in the lease, as you may have no choice but to renew due to it being so late in the term of the lease.
Finally, it is essential that there is no ambiguity surrounding the wording of this option, or the dates within which this option can be exercised.
It is possible to have the most thorough checklist available and communicate clearly, and still fall victim to an ambiguous commercial lease. Without prior legal experience, it is very difficult to find all the shortcomings and oversights that could be present in a commercial lease. Therefore, before entering into a commercial lease, you should always seek advice from a legal professional. This advice, combined with your checklist and business nous, will mean that the commercial lease that you eventually sign will place your plumbing business in the best position possible to achieve success. An overview of how a legal professional can help your plumbing business can be seen here.
Are you looking to start your own plumbing business, or expand your already existing plumbing business? If so, it is important that you take great care in understanding all of the legal implications that surround a commercial lease. The most effective way to ensure that you are on the right side of these implications is by creating a checklist. From this checklist you will be able to create an option to renew that will allow your pluming business to expand in the manner, and at the pace, that you want. However, it is important that you seek legal advice during some stage of the process, as this will allow you to feel confident that your business plan will be reflected in the commercial lease, which can be enforced in a court of law. If you have any further questions regarding commercial leases, feel free to call LegalVision for a fixed-fee quote.