Leases: 10 Mistakes that Most People Make

Guide to Negotiating a Commercial Lease

In a lease an agreement, there are two main parties, these are the owner and the user of a property who agree on certain terms on the use of the asset. A lease has main two players, these are the user of an asset also referred to as the lessee, and the owner of an asset referred to as the lessor. The most common types of assets that are leased include vehicles, building as well as property. Lease normally involves the lessor who is the legal owner of an asset and the lessee, the user of the assets on conditions that he or she will have to pay for using the property. The lessee is required by the law to abide by the set rules and regulations regarding the use of the property or asset of the lessor. One of the main examples of the lease agreement is the car lease, here, for instance, the lessee may only be allowed to use the car for personal use.

A commercial lease refers to legal document that sets out the rights and responsibilities of both landlord and tenant of commercial premises. At times people do mistake commercial lease agreement with a non-commercial one, the commercial agreement takes into account properties that are used for conducting business activities, whereas the non-commercial takes into account residential buildings. Lease agreement normally takes in the forms of retail, commercial lease and the non-retail commercial lease. People do mistake the two types of commercial leases, the retail, commercial lease for instance, occurs when a property is used for selling goods and services whereas the non-retail lease takes into account the use of a property for not selling goods and services to the public but are used for other business purposes such as making offices.

The following are the guide to negotiating a commercial lease agreement. The essential part in taking part in a lease in by identifying the commercial property that is being leased. After locating the commercial property , you need to complete the commercial lease agreement then apply for the real estate lease. The mistake that most people make when taking part in a lease agreement that they do fail to evaluate the length of the lease agreement. It is important to choose a lease that will be convenient to your business operations, for instance if you are operating a small business a lease agreement of one or two years is best.
The other vital consideration in the commercial lease agreement is the rent that one is expected to pay for using the property. The best way to get the best price for the property is by researching on other lease properties in the areas and compare their prices; this will give you the chance to negotiate a fair price. In some case the lease may be a gross lease where other charges have not been included, in such a lease, the hidden cost may be higher when summed up to the gross lease thereby making the agreement to be costly; therefore , it is important to beware of the hidden cost before deciding to rent a commercial property.

In some cases , one may want to make some changes in the agreement, therefore, before signing in the contract , you need to be sure that the modifications are valid and if they will benefit you.

5 Takeaways That I Learned About Franchises

5 Takeaways That I Learned About Franchises