Signing a commercial lease is often a convoluted process for most business owners. In Australia, for instance, the government has put several new policies and regulations on commercial rental properties.
This is primarily due to the population growth and the rapid urbanization sweeping across cities such as Brisbane. Then, renting space in such areas requires you to enlist the help of commercial lease lawyers in Brisbane.
These professionals can simplify the entire renting process, from signing the lease to guiding you on critical legal points.
Still, there are a few things you can do on your own. Read on to know more.
Things to examine before leasing commercial property
Before signing anything, you need to grasp the importance of research. From examining zone permits to understanding the history of the building, leasing anything requires a structured and definitive process.
So, here’s what you need to look at.
1. Owner’s history and track record
A beautiful space can often be distracting. However, this is something you need to guard against. Before signing a lease, the most pertinent questions aren’t related to the available facilities. Instead, the focus should be on the landlord or the building owner.
What does their past ownership history look like? Are they forthcoming with all the information?
The answers to those questions are crucial. You also need to learn all you can about their financial status and, if possible, employment records. After all, you’re entering into a business relationship with them. It would help if you started on the right foot.
2. The location’s potential
One of the determinants of your business’s success is its physical location. Therefore, when renting a commercial space, you must envision what the location can do for you.
For example, small eateries can benefit from a prime location with heavy footfall. Yet, that location may also be more expensive. It’s all about aligning your goals with what you can realistically afford.
Sending a lease before thoroughly examining your business’s financial structure is a dangerous mistake. It is, however, easy enough to avoid.
3. Zoning regulations and permits
The impact of zoning laws is something that a lot of people underestimate. However, a 2018 study found that Australia’s zoning laws added anywhere between AU$ 150,000 to AU$ 500,000 to property prices.
While commercial renting is slightly different, the basic rule still applies. A simple conversation with reliable commercial lease lawyers in Brisbane could help you understand the legal responsibilities in this context.
Additionally, particular areas have specific permits. While a landlord may claim that a given space has a commercial permit, that may not always be the case. It falls on you to authenticate all related information to avoid potential legal repercussions.
4. Additional financial costs and security
Additional property expenses will usually not be discussed by your potential landlord. Most often, they will choose to incorporate it into the rental agreement as a minor by-line. Thus, to avoid unforeseen complications, you need to enquire about:
- Property insurance
- Real estate taxes
- Property upkeep
- Possible repairs
- Potential enforcement of local nuisance regulations
- Utility services, security and other conveniences
- Your ability to make concrete improvements on the property
While the above elements may not be the first things on your mind, you must ask about them sometime during the leasing procedure.
In summary
Ensure that before signing anything, you thoroughly examine all the listed points.
If there are complications during the entire process, consider contacting commercial lease lawyers in Brisbane. Even discussing the potential lease agreements with such professionals could help you better assess possible risks.