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Business owners: Understand the lease before you sign

On Behalf of | Feb 28, 2020 | Real Estate Transactions |

Most business owners know that their location can play a considerable role in their business’s success. That is why business owners take time to evaluate several factors of the location, including the consumer demographics, the accessibility to this area and of course, the price.

There are many elements to consider when finding a location for a business, but the price is a large component of a business owner’s decision. A commercial lease is a significant part of business costs, so Connecticut business owners must know that there are several details they must consider in the lease itself before signing.

What details should business owners review in their lease?

It bears repeating that business owners must make sure they carefully assess all of the information in their lease. This is critical to protect their real estate investment as well as their business.

Generally, it is helpful to review the lease with an experienced attorney to ensure business owners negotiated a good deal and effectively protect their ventures. However, business owners must also be aware of which details, in particular, they should examine.

A few of the most important aspects that business owners must analyze before signing a lease include:

  • The length of the lease, as well as the possibility or terms of renewing the lease;
  • All of the costs, including rent, insurance and property taxes;
  • Whether the business owner can modify the property; and
  • The business owner’s responsibilities, such as obligations to make repairs, maintain the property or pay for utilities.

It is critical to evaluate these details before signing, so business owners still have the option to negotiate with landlords.

Is there a strategy for resolving disputes?

Business owners know how important it is to have a dispute-resolution agreement in any contract. The same thing applies to the commercial lease.

Disputes with a landlord are often the last thing that business owners want to manage. That is why business owners must also review the policy for resolving disputes included in the lease to ensure it offers a clear and fair resolution process.