Commercial leases are an important part of many businesses, and negotiating favorable terms can put a business owner in position for success. Potential tenants should remember that lease agreements are structured in favor of the landlord, and they should consider hiring a lawyer with Van Dillen & Flood P.C. to evaluate the terms and negotiate for modifications.
Evaluate the Lease Length
Once the owner chooses a potential rental location, completed an application and had it approved, they receive forms for the lease. One of the first matters to be determined by Property Law Services St. Louis MO is the lease length. One or two years is standard for smaller businesses, with a renewal option included. With a shorter lease, the owner is not tied down but they can stay if the property fits the company. However, for restaurants and other location-dependent businesses, a longer-term lease may make sense.
Consider Comparable Rents
The rental amount is a primary consideration in commercial leases. Owners should learn the average local cost before negotiating a fair price. Rent increases should be discussed during renewal negotiations so there are no unpleasant surprises later. The landlord may want to increase rent for every additional year, and a client’s attorney may work out a limit on increases to keep rent affordable. An attorney with a focus on Property Law Services St. Louis MO can also help a client negotiate matters regarding security deposits.
Find Hidden Costs
There are two types of commercial leases: gross and net. In a gross lease all costs and fees are included, and in a net lease, the tenant pays costs other than rent. Many leases leave the tenant liable for maintenance costs and other expenses. Clients and attorneys should negotiate for the most favorable terms possible in this section, and they should negotiate limits on these costs.
Ask for Beneficial Modifications
A lawyer handling property law services in St. Louis, MO can ask for lease modifications to benefit the client. For example, a sublease clause may be helpful to those who need to close or relocate. In some instances, a business owner may want a clause that keeps the landlord from renting a unit to a similar company. All of these terms, and others, can make the difference between a business’ success or failure.