A rental agreement is signed when you lease commercial property to a businessman to set up his/her business. The complete process of classifying, negotiating and signing a commercial lease is lengthy and vital. Leasing commercial property can be a cost-effective deal if done properly. It should ensure that both parties, landlords as well as renter get the benefit from the deal.
It must be sounding very difficult but, with RentScribe the process become easier. There are a few points that every businessman should consider before signing the commercial lease agreement.
Understand your business requirements:
There are a few essential things that should be considered by every businessman. The foremost thing is the space you need in the future, then analyse your budget as well as the preferred location. A little research for the property and negotiating as per your research will help you a lot. After all the negotiation and research, if you are still confused then the best option is to go for short term lease. It may cost you more per square feet area but at least you will have the option to walk away easily in a shorter period.
Review the contract properly:
Not reviewing the contract is the biggest mistake that every renter makes. It is very important to review the contract after the final negotiation. You should have a proper understanding of it before signing the agreement. We know it’s tedious to read the paper contract, but you don’t have to worry! Register with RentScribe and create a digital agreement which you can even read on your mobile phone from anywhere.
Know the current market:
Negotiation is a must when you are dealing with commercial property. But it is always advisable to know the current market that what others are paying and what standard agreement looks like. This activity will give you the idea that what you are doing and expecting is sensible.
Analyze termination conditions:
The termination conditions mentioned in the commercial lease agreement must be analysed. The details mentioned there are vital to know. There are plenty of situations that you need to understand. Like what will happen if you don’t pay the rent or if the property went into redevelopment or is sold. In some lease you may have to pay half of the rent or the complete rent in some specific situations, therefore it is advisable to go through the clauses. If you know the termination clauses mentioned in the lease agreement, you can at least negotiate accordingly.
Well, these are few points that should be considered before signing the commercial lease agreement. As it is going to help you in the complete process of renting and will give you the understanding of the same. For more details regarding commercial properties and lease agreement kindly visit RentScribe and make renting smarter.
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