10 Pitfalls to Watch Out for When Taking a Commercial Lease

Posted On 12 June 2024 by Sarah Gratton
10 Pitfalls to Watch Out for When Taking a Commercial Lease

10 Pitfalls to Watch Out for When Taking a Commercial Lease By Sarah Gratton

Navigating the world of commercial leasing? Buckle up because it's not always smooth sailing! Whether you're a seasoned pro or dipping your toes into the commercial property pool for the first time, there are some common pitfalls you'll want to avoid.

Here's our rundown of the top 10 things to watch out for when taking on a commercial lease, straight from the savvy minds at Pardoes' commercial property department.

1. Time is of the Essence: Ever feel like finding the perfect space is like searching for a needle in a haystack? We get it! From scouting locations to negotiating terms, it's a journey that often takes longer than expected. Be prepared for the unexpected and plan ahead for those fit-out works.

2. The Right Fit: Choosing a property that aligns with your business needs is crucial. Location, layout, and amenities all play a part. Plus, make sure you've got a solid grasp of the lease terms – you don't want any surprises down the line!

3. Time's Up: Lease length is a tricky balancing act. Too short, and you're left in limbo; too long, and you might find yourself stuck in a space that no longer suits your needs. Negotiate terms that work for you and keep an eye out for any hidden clauses.

4. Rent Woes: Rent obligations can sometimes feel like a minefield. Late payment charges, rent reviews – it's enough to make your head spin! Make sure you're crystal clear on what you're signing up for to avoid any nasty surprises.

5. Money Talks: Keep an eye out for any unexpected costs lurking in the shadows. Insurance, utilities, service charges – they all add up! Negotiate where you can to keep your budget in check.

6. Passing the Baton: Need to pass on the lease? It's not as simple as handing over the keys! Understand the process, including costs and conditions, before making any moves.

7. Repairs and Maintenance: Who's responsible for fixing that leaky faucet? Clarify repair obligations upfront to avoid any disputes down the line. And don't forget to document the premises' condition – it could save you a headache later on!

8. Early Exit: Sometimes, things don't go according to plan. Negotiate a little flexibility into your lease agreement to give yourself an out if needed. Trust us; you'll thank yourself later!

9. The Dreaded Rent Review: Brace yourself for the rent review – it's like waiting for exam results! Understand your landlord's rights and negotiate like a pro to ensure you're not left out of pocket.

10. All's Well That Ends Well: Not every lease has a fairy-tale ending. Financial setbacks, disputes – they happen. But with careful negotiation and open communication, you can minimise the risk and keep your business on track.

So, there you have it – our top tips for navigating the world of commercial leasing. With a little know-how and a dash of negotiation skills, you'll be signing on the dotted line with confidence in no time!

For more information visit our website or call 0800 062 0442.

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