Getting a commercial property for rent is critical for your business. Hence getting a suitable and affordable location is worthwhile. There will also be the flexibility of easily shifting to another location when you rent, rather than when you buy the property. When in search of commercial property for rent, don’t compromise on location by paying a little bit more for the space to ensure good commutability for your employees. This guide gives an outline of what to consider before renting a property for business.
The cost of renting the space
Rent is one of the costs you will encounter when in search of renting commercial space. You may be asked to bring a rent guarantee, especially in instances where the business is new. The guarantee will depend on whether the rent is paid annually, quarterly or monthly. Therefore, you need to find out the rental trends in that specific area before consenting to the agreement. In some instances, the property owner might require you to cover part of it, and part of the service charge applicable. Other avenues you may need to budget for include;
- Repairs, decoration and maintenance.
- Value Added Tax (VAT) payable on some buildings.
- Local authority charges.
You should thoroughly research market dynamics, which include rental values and tenant values. When in search of commercial property for rent, location is a critical factor to consider. For example, if your business involves employing people who have a specific time to report to work, then you are supposed to find an area that is easily accessible by transport and of high security. If the business majorly consists of doing work online, then the broadband coverage for the internet is a significant factor to consider before picking a location.
Negotiate an agreement
Renting a commercial property requires the signing of a lease which is a binding contract that spells out the agreement between you and the landlord. Not to forget that when renting a property, the first agreement should be short term. This is subject to change depending on the success of the business. The contract should have;
- How and when the bills are paid.
- Who will take responsibility for maintenance charges? (this will ensure no conflict arises if maintenance issues appear).
- Length of the lease- the duration you intend to take in that premise.
Once you have ascertained that the premise you want to rent is in good shape and your business is good to go, it is appropriate to finish the paperwork. Take some time and thoroughly review the agreement or, better yet, have a legal professional look at it. After that, you will exchange the contracts containing the terms of your agreement that legally binds you and the owner to it. From here the processes will be complete, and you are ready to start your business successfully.