It’s usually a good idea to start by deciding on the size and type of property your business needs. Of course, choosing the right commercial property will depend heavily on the type of business you run. Start by considering the following points:
- Realistic expansion plans and any potential to take on extra space
- Weigh out the advantages and disadvantages of renting a commercial property and decide on whether renting is the right option for you
- Work out how much your business can afford in rent payments
- Register with your local commercial property agents to see what properties are available to rent in your preferred location
Before you jump in and choose a property, it’s important that you consider exactly what is it that your business needs. Important factors to consider are:
- Location; make sure that the property is situated in a location that works for your business and its needs. It’s also important to consider how accessible the property is so that employees can commute easily.
- Type of property; this mainly relies on the type of business you are running, whether it be a restaurant, retail shop or an office, it’s important to make sure that the property has everything you need to be able to run your business efficiently.
- Cost of renting; whether this is your first commercial property or you have decided to expand and invest in a larger property, you need to make sure that your business can afford the rental costs as well as all the other costs that accompany renting a commercial property including the cost of insurance and communal service costs.
If you have made the decision to rent, you will need to review the rental terms on the property. Commercial leases are long documents and mistakes are easy to make. If you are not experienced at reading or negotiating the terms of commercial leases, it may be a good idea to get in touch with a legal expert who can make sure there are no nasty surprises along the way.
If you think you’ve found the right property for your business, the next step is to undertake some property investigations. Think about aspects that you would be looking for if you were renting a house and make sure you’re checking for dilapidations or other works which may be required. It’s also important to take other factors into account such as:
- Transport links and accessibility; are you and your employees able to commute to the property with ease?
- Parking; this is a big consideration if you’ve got lots of employees who drive into work every day.
- Broadband coverage; nowadays, business rely heavily on technology and the internet, so making sure that the property has broadband coverage could be a make or break decision.
There are lots more considerations to make before entering into a lease on a new commercial property, and an expert solicitor can ensure proper investigations and enquiries are made before you sign a binding agreement to rent the property. These are not exclusive to but can include:
- Maintenance responsibilities
- Insurance terms and responsibilities
- Local authority charges
- Potential disputes
- Restrictive covenants
- Property title documents
Once you are armed with the results of all the investigations, you will then have the opportunity to negotiate contract changes in order to agree the terms of agreement for your business to rent the premises – that you and the property owner will sign. Negotiations can cover the following:
- Rental costs
- Agree deposit amount
- Completion date
- Rental term
- Service charges
Once the contract for lease is finalised and you are happy with the terms agreed, then if you are ready to go ahead, you will need to sign it. Then, once the contract or lease is agreed and signed, you can begin to make arrangements for the completion date and get ready to move into your new business home!
Here at QualitySolicitors Bradbury Roberts & Raby, our Commercial Property Department will be a useful, trusted and affordable member of your team. With our Free Initial Assessment service, you can talk through any concerns or questions you have with one of our specialist business property lawyers. Having a lawyer on your side means your business won’t get caught out with a legally binding agreement which could potentially cause your business problems in the future. You can give us a call on 01724 854000 for a no obligation and no charge chat with one of our legal experts or alternatively, visit our website to find out more about us and how we can help you if you are thinking of leasing a new commercial property.