Starting a new business or moving an existing business to a new location is a complex process. Understanding your rights and needs when signing a commercial lease is instrumental in the success of your business. The following are six actions you should take before signing a lease for any commercial property:
- Make sure you sign a lease that is right for you and your business. There are four main types of commercial leases :
- In a single net lease, you will only pay property tax and utilities, while the owner pays for insurance, repairs, and maintenance.
- In a double net lease, you will pay property taxes, utilities, and insurance premiums, while the landlord will pay for repairs and maintenance.
- In a triple net lease, you will be paying all building costs, and the owner will be paying for certain repairs.
- In a modified gross lease, you will be responsible for the base rent, and in the following years, you will pay both the base rent and some operating expenses.
- Read the lease in its entirety. If you do not understand parts of the lease, ask a realtor or a real estate attorney. Be sure that you know what types of expenses you will be responsible for.
- Gain permission from the city or township before you sign the lease.
- The property owner may or may not know if your business is approved for zoning.
- Do not rush the process. Regardless of your situation, rushing lease negotiations can result in not getting what you want or being put in a financially vulnerable position. Leases are negotiable, so if you wish to change certain provisions in the lease, discuss the proposed changes with the landlord.
- Be open-minded. Avoid settling on the first property you see because you believe it would be a “good deal.” You may or may not get a fair deal for the first property, so be sure to look at other commercial properties in your desired geographic location.
- Consult an experienced real estate attorney. A knowledgeable real estate lawyer can help you not only understand the terms of a proposed lease agreement, but they can also aid and advise you during the lease negotiation process.
Contact a Will County Real Estate Lawyer
At the Law Office of Jack L. Zaremba, our real estate lawyer, Attorney Ann Zaremba, can guide you throughout the process of purchasing or leasing both residential and commercial property. Contact our Joliet real estate attorney today by calling (815) 740-4025.