When you find the right place from which to operate your business, you may feel the need to rush forward and sign the lease agreement as soon as possible. After all, it’s difficult to find commercial space that’s in your budget and suits the needs of your Indiana small business. However, there are several reasons why you may want to slow down and negotiate the terms of your lease agreement before signing.
You may not realize that it is possible to negotiate the terms of these contracts. Landlords may have agreements already written, but that does not mean that you have to sign it as is. Doing so could expose your business to unexpected financial loss and complications in the future. You will find it beneficial to learn more about what should be in this agreement and how you can protect the interests of your company.
The details matter
What’s in your lease agreement matters. These terms will affect your company for months or years to come, and it’s prudent to make sure that what you are agreeing to will make sense long term. The more thorough and detailed a lease agreement is, the less likely it will be that you have to deal with unexpected complications and confusion with your landlord. Some of the things that should be in your lease include:
- Rent details – Not only should your lease agreement include details regarding the amount of rent you will pay, but it should also include details about potential increases and the specific things included with rent, such as utilities.
- Changes to space – The lease agreement should also outline which party is financially responsible in the event that you need to make changes or repairs to the space.
- Permitted use of the space – You can include in your lease terms that outline exactly how you plan to use the space, but you may also want to make the terms broad enough to allow your business to build and expand later.
- Length of the lease – Any commercial lease should clearly spell out how long the lease is valid. You may also want to negotiate terms that address subleasing and renewing the contract once the term is up.
As with any type of legal agreement, a lease agreement is legally binding for as long as it is valid. This is why it is important to make sure you are agreeing to something that will work for your company for a long time. When negotiating or reviewing a contract, you may find it beneficial to seek the guidance of an experienced real estate attorney.