By Emon Ahmed
Negotiating a commercial lease can be a tricky business. We at Ackroyd Legal understand that on top of running a business, this can be quite stressful for you. Remember, leases are not just legal contracts; they also have the potential to make or break your business. They are a living instrument for your establishment. As such, we have provided some useful tips to settle a lease with favourable terms:
Negotiating is part of the trade:If you are paying ‘x’ amount each month, naturally you will want to maximise access and privileges that will assist your success. This could be anything from obtaining an easement to the inclusion of a non-compete clause.
Think about the length of your lease:This is especially crucial for start-ups and new businesses that want to minimise their risk. In London, market rent prices often fluctuate. Having a break or rent review clause may be beneficial for both the tenant and the landlord.
Adding Value to the PropertyYou want to show that your business will make the owner’s space more valuable and will increase the attractiveness of the area. For example, the clientele your coffee shop brings in may attract other potential businesses, as well.
Alterations & RepairsAs a tenant, you want to ensure that the lease includes a reasonable degree of flexibility should anything go astray with the property.
Service ChargesBy negotiating the lease, you can ensure that the lease caps these charges or at least that the lease reflects a fair amount.
Miss Ayushie Patel, a Senior Solicitor in our commercial conveyancing department, says “Obtaining a commercial lease is a huge responsibility — your business may be contingent on the terms of your lease. Commercial leases are very different to that of a residential property. Before approaching a landlord or signing a contract, you should make sure you fully comprehend and agree with the terms of your lease. For example, the amount of rent payable, the length of the lease and the arrangement of the physical space”.
Having a team of property lawyers with solid experience in lease negotiations can lead to a smooth and speedy negotiation of your commercial lease. Ackroyd Legal is here to assist in, not just the terms of your lease, but also in the success of your business.
Please visit our page for more information on commercial conveyancing.