Signing a commercial lease agreement is an essential step for many businesses, so it’s crucial to understand the terms before committing. When setting up a business, you’re trying to keep costs down, so it can be tempting to just read the lease yourself and sign off. However, for the reasons below, it may be beneficial to seek legal assistance.
Commercial lease agreements often include complex legal jargon that isn’t always easy to understand. A lawyer can explain these terms in plain language, ensuring you know exactly what you’re agreeing to. The terms can include a range of things like rent increases, lease duration, and your rights as a tenant, so it’s crucial to understand what they mean.
Many commercial leases come with additional costs that indeed aren’t written in bold print to make them noticeable. Some of these costs could include additional maintenance fees, utility charges, or insurance requirements. A lawyer can help you first identify these hidden costs and then negotiate them on your behalf if the costs don’t seem reasonable.
While there’s never much point trying to argue down the price of a residential rental property, commercial leases often have some flexibility. There are often terms or clauses that you can request changes to, but without having legal expertise, you might not be aware of them. Whether it’s negotiating a rent-free period or capping future rent increases, a lawyer can often negotiate more favourable terms.
As with any agreement, commercial leases are prone to disputes. If you run into unreasonable requests from the landlord, significant changes to leases, or any other type of actions that cause a problem, a lawyer can help you. However, many such disputes can be avoided entirely by having a well-written lease agreement so that all parties know their rights and obligations.
*This information is current at the time of publication. For accurate legal advice, please contact Scammell & Co on 08 8440 270.
