The 5 Essential Questions to Ask Your Commercial Property Solicitors
Choosing a commercial property is something that should not be done in a hurry because a lot of money is involved. Before leasing or buying a property, there are certain things you need to make sure of. Many people have entered into all sorts of problems because they rushed into signing a lease. Below are 5 key questions you need to ask your commercial property solicitors before leasing or making any purchase decision.
What type of lease is offered?
This is arguably the most vital question you need to ask. Commercial property leasing terms is defined by the type of lease being offered. Some terms are straight forward while others have extended clause attached to the lease. Some are percentage based while others are full service based. Ask what type of lease is offered and make sure you understand all the terms used in the leasing contract.
What is the duration of the lease?
Well, this is a basic question that needs to be answered but it’s important to mention it here. Generally, commercial leases will last between 3 to 10 years, depending on the type of building and area of business. There are instances where some solicitors will like to extend the leasing contract in order to fill up vacancies for a long time and keep a steady flow of rent. Find out from the solicitor how long the lease is going to last and the exact date it expires. This will help you plan better.
Are the terms negotiable?
Most commercial leases should have room for negotiation. But if you meet an inflexible leasing agreement, it’s a clear sign that the landlord may be unfair or unreasonable during times of repairs or favors for unforeseen circumstances. Any leasing agreement should have space for rent negotiations and other fees.
Who takes care of maintenance and insurance?
This question is necessary to help you decide whether you need your own insurance or if the landlord’s general insurance for the building is enough for your business.
What is the present rent and will it change in future?
You should find out exactly how much you are paying for leasing the property and if the price will likely change in future. Find out whether the rent can change at anytime or if there is going to be an annual rent review. This question will help you draw up the overall cost of the rent and know what to expect in the future. Understand perfectly how the rent is calculated and derived. Some landlords include an escalation clause in the tenancy terms to give them the avenue to increase their rent at any given time.