Home Features Mastermind Videos About Advertise Blog Network Contact
   

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?

Sales Lessons From Starbucks And Dell

Leasing Checklist



Leasing Checklist
   

Leasing Checklist In many states, commercial leases are not covered under consumer protection laws that normally safeguard tenant rights. It is assumed that commercial leases are contracts between knowledgeable business people, and therefore less government regulation is needed than in residential leases. Thus it is essential to scrutinize every aspect of the lease and renegotiate unfavorable terms before signing.

Non-Compete Clause If you run a retail establishment, insist upon a provision that prohibits the landlord from renting space in or near the same retail center to a competitor.

Dispute Resolution If there is a dispute involving you and the leaser, by what method will it be resolved? Negotiating for mediation or arbitration rather than regular court is usually advantageous.

Spatial Specifications Exactly how much space is being rented, and which areas are included? It is wise to take a tape measure and confirm the leaser's measurements, as they are often exaggerated. Finding a discrepancy in reported space and actual space is a valuable bargaining tool. Do you have the right to move to another space in the complex if you need more room to expand?

Default and Termination Under what conditions can either party free themselves from the lease and what notice requirements are needed?

Pets In an effort to attract skilled employees, more employers are allowing pets in the workplace. Will the leaser permit pets in the space?

Rent Prices are always negotiable in commercial leases, and may depend greatly on concessions made with regard to other aspects of the lease as well as general market conditions. If options to renew are considered, what rent increases are allowable, and how are they calculated?

Additional Costs The cost of utilities, taxes, and maintenance are often passed on to the tenant. If you agree to pay them, make certain that your portion is in line with the percentage of the building that you occupy.

Buildouts Improvements, modifications, and fixtures added to a rental space are called buildouts. Negotiation should include whether these are allowed, which party will pay for them, and who owns them after the lease ends.

Sublease The term "sublease" refers to a transfer of less than the entire term of the lease. Under a sublease, the subtenant is not directly responsible to the leaser, whose recourse against the subtenant is only through the original tenant. If your business fails or the location doesn't match your needs, do you have the leaser's permission to sublet the space to another party?

Term Options Many new businesses negotiate a short initial lease with one or more options to renew. Options give you the right to stay by notifying your landlord in writing a certain number of days or months before the lease expires. Landlords may want a higher rent for the renewal period as well as an extra fee in exchange for the option.

Leasing Pitfalls The following factors may adversely affect the tax status of your leases:

* rental payments that establish equity or lead to a property title, * rental payments that exceed the fair rental value of the property by a wide margin, * rental payments that are actually the equivalent of interest on a purchase, and * when, subsequent to the end of the lease, the option to purchase is exercised at a rate that is quite low in comparison to the actual property value.



Leasing Checklist - To learn more about this author, visit Start Your Business's Website.

Like this article? Share it with your friends
[Get Copyright Permissions] E-Mail | Print | More  


Related Articles Related Articles
Lease Equipment
  Sometimes leasing equipment, instead of buying it, can be the best option for your business. However, there are many variables that should be considered, including costs, use restrictions, legal parameters, and othe...
Sales Tips-"You Want Fries With That?"
  Since being introduced by McDonald's, this phrase has become a part of our language and even our culture. But the most important thing YOU need to know is, "Does it work?"
Grow your Business with Equipment Leasing
  Leasing is starting to become accepted more in Canada, whereas it has been a main component of business finance in the United States for quite a number of years. Find out 10 reasons why businesses lease, leasing vs ...
Leasing Checklist
  In many states, commercial leases are not covered under consumer protection laws that normally safeguard tenant rights. It is assumed that commercial leases are contracts between knowledgeable business people, and t...

Related Forum Posts Related Forum Posts
Different Types of Funding Different Types of Funding
Book Promo 101 - Learn the Basics of Book Promotion Book Promo 101 - Learn the Basics of Book Promotion

 
About the Author


Start Your Business
(Visit Start Your's Website)
Starting a business requires you to complete a number of steps and make some key decisions. Though part of your overall plan, you’ll need to select a location, decide on a business structure, and obtain the necessary licenses and permits. In addition, determining which financing options will meet your short-term needs and long-term goals is crucial. Within this section, we’ll provide information on these topics along with guidance on buying an existing business, copyright and trademark issues, and getting support from an outside expert.
Have A Suggestion?

View Author's Blog
Mastermind Group Resources
Mastermind Group Resources - Strategies to get the most from your Mastermind Group. The purpose of this blog is to share resources, tips, strategies, and ideas on how to build a Mastermind Group and make it more effective.
Selling to Small Business
Selling to Small Business - Strategies to help you sell to small business entrepreneurs. The purpose of this blog is to outline strategies companies can take to effectively target small business owners.
Become An Author

View Author's Video
Become An Author

Free Downloads


Start Your Business's

Complete
List Of
SBA
Articles

First Name
Last Name
Email
 
If you enjoyed this article, get Start Your Business's Complete List of SBA Articles For FREE!
Become An Author