Things to Know Before Renting a Commercial Property

There is one golden rule of business success – location, location, location. When leasing a commercial property, finding the right real estate at the right location is only half the hurdle. There are many factors that you must consider when renting commercial space. First of all, you should know that it is a lot different from renting a residential property. There are more legal responsibilities involved and the laws work differently as well.

So, if you have planned to rent property for commercial use, here are a few things that you should know.

• Commercial Terms are More Flexible – There is no particular form for commercial property leasing because the terms are usually very specific to what is decided between the landlord and the renter. It is often the landlord who decides the terms and therefore, tenants should always read the papers properly.
• Term Period Bindings – When it comes to legal binding for a fixed term, commercial agreements are not as flexible as residential ones. Getting out of the contract before the term may have a penalty usually described in the exit clause.
• Building and Alterations – If alterations are to be made to the property, make sure that payment responsibility is clearly outlined in the agreement. For short term leases, the cost is usually covered by the tenant. However, the landlord might cover it for a long term lease.
• Tenant Protection – Unlike the tenant protection laws in a residential lease, the tenants do not get the upper hand. There are fewer rules for protection of privacy and virtually no cap on the security deposit.

Understanding what you are getting into can turn any deal in your favor. That is why it is best to work with a real estate agent with considerable experience in this area. Talk to us about your leasing needs.