Tips on commercial leases/contracts for small business owners

Small businesses, such as start-ups, need to build their reputation from the ground up. This includes looking for viable commercial space to grow their estate. With the growing number of available options in the market, finding the right place is not the main problem. Instead, negotiating a commercial lease is what gives business owners a headache.

Here are some tips to help you secure the perfect location for your business:

1. Setting the terms; get representation. Be sure to clearly lay out the terms of your lease so there is no misunderstanding with the landlord. Also, get representation so you can get the most updated information and best deals. It’s always nice to have someone represent you, or consult a lawyer for legal advice.

1. Understand the terms of the rent. Take some time to understand what your contract covers because your rent might not include everything. Read every clause and all fine print so you will not be shocked by any “hidden fees.” Everything on your lease is negotiable and there is no set standard for what should be included.

1. Protect your business. Include clauses that will protect your business interests. These clauses might include sublease clauses, in case you need to expand your business, and exclusivity clauses, to prevent competitors to be located directly near you.

It’s always better to consult with a professional and get legal advice. You want all the necessary information in order to make an educated decision when it comes to negotiating a commercial lease.

By Karen Milde, Reframe Marketing, Vancouver, BC, CYBF Mentor

About: With over 8 years of experience in Marketing and Communications, including a stint as Marketing Director, Karen Milde is all about the bottom line and marketing ROI. She is a go-getter, and prides herself on being technology savvy.