Samstag, 10. Januar 2015

What to pay attention to when signing a business lease contract in U.S.

  1. Triple-Net-Lease: Who has to pay what additional cost? Most leases are triple-net where tenant has to cover very high cost - even repair of building (e.g. roof, ac, outside wall etc). Please be careful because this can expose you to very high risk. At least roof and outside parking should be covered by landlord in my opinion.
  2. Lease duration: please make sure, that you have possible prolongations in your contract with a fixed lease amount, so you can stay as long as you want and have not to pay astronomical amounts. Make also sure, that there are termination options from your side (tenant).
  3. Selling a business: if you have to sell your business you need something like a sublease possibility or the right to pass your lease agreement with same options to a successor.
  4. Free rent: ask your landlord for a couple of free month to get your business running with low cost. Most likely you won't make a lot of money with your store in the first 3-6 month and need to keep costs low.
  5. Restrictions: check for all restrictions as limited parking or hours of operation
  6. Fixtures: if you have to pay for additional fixtures (which are hard or impossible to sell later on) or other upgrades when moving in you should try to get some cost covered from landlord. Sometimes your landlord will grant you a discount on your lease for a certain time
  7. Buy your property: if your business is successful, maybe you want to buy the building / appartment / store later on or just prevent that the property which your rent is being sold later on to a very hard calculating real estate company. To prevent such problems you can try to add an option to buy - before someone else can buy. 
This are just a few examples how to secure reasonable costs, possible grow and success of your business. 

Good luck 

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