Our business law attorneys review and draft rental agreements for entities of various sizes throughout New Jersey and New York.
Leasing a commercial property can be a viable alternative to owning, especially during these unprecedented times. But it’s not as simple as finding a commercial landlord looking to rent space, signing a lease and paying rent each month. Before entering into a lease, our attorneys want you to keep these things in mind to make sure you get the most out of your rented space:
- There are fewer consumer protection laws for commercial leases. Commercial leases don’t have as many consumer protection laws as residential leases. For example, there is no cap on security deposits for commercial leases. So, even if the monthly rent is affordable, the security deposit is left to the discretion of the landlord, so you will need to keep this in mind and discuss this before signing the lease.
- Read the fine print of the lease. Consider the type of business you’re running, the size of the business and whether or not you’re likely to need additional infrastructure down the road. Are you expanding and may eventually need to add more cubicles? Do you wish to paint the walls, or tear a wall down to create more space? Be sure to consult with the landlord and gain a clear understanding of whether or not you’re allowed to make modifications to the property in order to avoid a potential legal dispute later.
- Length of the lease. Short-term leases are almost always better for businesses than long-term leases. A short-term lease gives you the flexibility of easily switching locations if the current location no longer fits the needs of your business. Our attorneys recommend negotiating for a one to two-year lease with the option to renew for two or three additional years. This will give you the sense of stability you need during this otherwise unstable time and also give you a chance to focus on growing your business.
At The GC Law Firm, we are well-versed in commercial lease agreements, and we help business owners select and negotiate the best terms. Contact us today at 201-488-1825, or through our website, to get started!