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I am a Wedding Planner. What are the legal considerations when entering into a commercial lease?

Are you looking to start your own wedding planner business, or expand your already existing wedding planner business? If so, it is important to make sure that you are aware of all the legal considerations surrounding commercial leases. A commercial lease forms the bedrock upon which you can base your entire business. As that saying goes ‘a man (woman) needs a place to call his (her) own’. This is what a commercial lease provides you with, a place that is your own. Without a commercial lease you will never truly be able to plant the roots of your business in the ground, as you will forever be threatened with eviction. However, with a commercial lease, you will be able to plan your business well into the future, and create a base from which you can expand your business as it begins to prosper.

What should I be aware of when signing a commercial lease?

Before you sing a commercial lease, you should be aware that everything included in the lease agreement will be set in stone the second that you sign it. This can either have amazing or horrible consequences for your wedding planner business. Therefore, you should ensure that every single combination or permutation has been thought of, before entering a commercial lease agreement.

Frequency of Rent

Very often business owners fail to realize the significance of this aspect of a commercial lease. The frequency of the rent, whether it be weekly, fortnightly, monthly or quarterly will have a significant impact upon the liquidity of your wedding planner business. Furthermore, it is often the case that owners of commercial property will be very set in their ways when it comes to the frequency with which they require payment. You should never let them dictate this to you, as it is ultimately your business that will pay the price. Therefore, it is essential that you analyse your business plan, so that you have a definite frequency of payment which will provide your business with the most liquidity possible.

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Renewal of Lease

An essential aspect of most commercial lease agreement is the renewal clause. This clause provided you with the option to renew the lease beyond the duration of the original lease agreement. However, this option is limited to a certain period of time during the lease, and a failure to exercise the option will mean that the lease will expire as per the original agreement. As a result, it is important that you place great emphasis upon determining when this option will be best for your wedding planner business. Too early, and you will not be able to make an informed decision, too late, and you risk placing yourself in a position where you have no option but to renew.

Although this may not be what you want to hear, it is advisable that you seek legal advice before entering into a commercial lease agreement. You can rest assured that this is what the owner of the commercial property will be doing, and the last thing you want to do is put yourself at the owners’ mercy before you even move into the property. An outline of how a legal professional can assist your business can be seen here.

A legal professional will be able to ensure that all of your needs are included in the commercial lease in a manner that will be enforceable in a court of law. This knowledge will often help resolve disputes with the owner of a commercial property before they arise. Otherwise, you will be forced to spend a significant amount of time pretending to be a lawyer, while all you want to be doing is running your wedding planner business. Nevertheless, despite seeking legal advice, it will still be up to you to make important decisions concerning certain aspects of your commercial lease agreement.

Conclusion

If you looking to start your own wedding planner business, or expand your already existing wedding planner business, you should ensure that you have a thorough grasp on the legal considerations that surround a commercial lease. Due to the fact that upon signing a commercial lease, the terms you agree to will be set in stone, you must be certain that the frequency of rent, and the renewal of the lease will allow your business to grow and prosper. Having a sound commercial lease will provide you with the confidence to focus on what you do best, running your business. In addition, it is important that you seek legal advice at some stage during the process. Finally, if you have any further questions regarding how commercial leases can affect your business, feel free to call LegalVision for a fixed-fee quote.

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Adi Snir

Adi Snir

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