Starting a new business might seem like an overwhelming and expensive process. It might be tempting to forego hiring an attorney to review your commercial lease, to save costs.
Your commercial lease is one of the most important documents you will sign when starting a new business. Commercial leases are typically written for 3-5 years and often contain provisions that creates significant financial risks for the tenant. 3 to 5 years is s a long time to be stuck with undesirable terms.
Here are four reasons why you should have an experienced attorney review your commercial lease before signing:
1) Ensure accuracy: - does your lease capture the important terms, such as the monthly rent, late fees, length of the lease, square footage of the space, renewal options, etc?
2) Understand prohibitions on use – Does your lease have restrictions on how you can use the space?
3) Understand extra fees - Does your lease require that you pay Common Area Maintenance/Triple Net Fees such as electricity, landscaping or outdoor maintenance for common areas, or pro-rated taxes?
4) Negotiate terms – An attorney can help you negotiate more favorable terms. Do not let your landlord have total bargaining power.
Signing a commercial lease without having an attorney review may seem harmless and cost efficient, but may result in severe and unexpected, expensive consequences.
If you are I the process of negotiating a commercial lease, the attorneys at Giles Shipp can guide you.