Ready to take the plunge on leasing a location for your small business? Review the following components that should be stated in your commercial lease or rental agreement, and consider your requirements for each. Also consider which of these may give you leverage during negotiations, and which you can afford to back down on.
- Names of Landlord & Tenant
- Address of the premises
- Rent amount, payment terms, late payment penalties and any allowable or scheduled increases
- Items included in rent:
- Description of rental space: square footage, available parking
- Utilities – phone, water, internet, gas, electricity
- Taxes, maintenance fees
- Lease term – start and end date
- Damage deposit requirements
- Any representations made (statistics or even promises about certain aspects of the site like foot traffic estimates, average utility costs, competitive restrictions)
- Zoning information
- Permitted uses of the premises
- Subletting terms and conditions
- Build-outs – Restrictions on and ownership of additions, modifications, improvements, or fixtures added while the space is occupied
- Repairs – terms and conditions
- Insurance and security requirements
- Non-compete clause (restrictions on leasing/renting to your competitors nearby)
- Dispute resolution
- Lease termination options
- Renewal options
- Signing incentives
- General legal provisions
- Additional rules and regulations
- Signatures and dates of signing