I run a watch repair business. What are the legal considerations of entering a commercial lease?

Are you looking to start your own watch repair business, or expand your already existing watch repair business? If so, you should ensure that you take great time and care in observing the legal considerations associated with a commercial lease. Commercial leases are intrinsically linked to the success of your business. A poor commercial lease can set your business back years, while a good commercial lease can give you a great advantage over your competition. As a watch repairer, you can set up shop in a variety of places, many of which will have vastly different commercial leases concerning the operation of your business. Therefore, it is important that you consider a number of factors when signing a commercial lease for your watch repair business.

What is the duration of the commercial lease?

The duration of a commercial lease is generally reliant upon you and the owner of the property. This is beneficial in that it provides you with room to negotiate, however, it can also be a somewhat daunting process when setting up your own watch repair business. When setting up your business, it can be tempting to try and arrange a commercial lease for the longest period of time possible. However, you must always take into account the fact that after a few years your bargaining power might change. If you become a lessee who pays on time, keeps the property in a good state of repair and attracts customers, you will often be able to renegotiate your lease for a lower price when the time comes. Although, it should be noted that this is a balancing act, and it can sometimes go the other way, with the rent being raised, or the lease not being continued.

What is an option to renew?

This brings us to the next legal consideration in a commercial lease, which is the option to renew. An option to renew is exactly as it sounds, it allows for you, at some point during your lease, to renew the lease so that it is extended beyond the original period. All commercial leases should have this option, as it allows for the continuity of your business, and protects you from being forced to leave a premises despite holding all the requirements of the lease. It should be noted, however, that this is a difficult aspect of any commercial lease, as it requires a great deal of foresight on your part, and relies upon a number of unknowns when coming up with an appropriate timeframe. You will be required to predict the perfect time when you will be able to determine whether or not it is worthwhile extending the lease. Too early, and you will not be able to make an informed decision. Too late, and the owner may sense desperation and be in a strong negotiating position when it comes to rent.

Therefore, as the owner of a watch repair business, you can see that the duration of your lease is a legal consideration of the utmost concern when entering into a commercial lease agreement. This is due to the fact that all things flow from these dates. Your bargaining power can be severely affected if the lease or the option to renew take too long. Alternatively, a lack of financial security, resulting from a lease term that is too short, could hamstring your business just as it is beginning to build momentum. Only you will be able to determine what the best time period is for your commercial lease. However, it is always wise to seek legal advice during the process of negotiating a commercial lease. You should never rely solely upon yourself when dealing with owners of commercial property, as you will have enough to worry about, trying to run the business. It is extremely valuable to be aware of the legal pitfalls and loopholes in a commercial lease. If you would like to see how a legal professional can assist you in the process of obtaining a commercial lease, click here.

Conclusion

If you are looking to start your own watch repair business or expand your already existing watch repair business, you should take great care in assessing the legal considerations associated with a commercial lease. The most important aspects of any commercial lease are the duration and the option to renew. It is from these two areas that all else flow, whether it be the rental obligations or review-of-rent process. As a result, you should create a clear timeline for your business before obtaining professional legal advice to ensure that a commercial lease will allow your business to grow and prosper. If you have any further questions regarding a commercial lease, please call LegalVision on 1300 544 755 for a fixed-fee quote, and our leasing lawyers will be able to help.