#07 Commercial Leasing for Small Business
Small businesses have been under a lot of pressure this year and one topic that has come up a lot with my clients is the area of commercial leasing. In this episode, I discuss the key things to be aware of before entering into a commercial lease. This will be particularly helpful for small business owners who haven’t entered into a commercial lease before.
I discuss the importance of obtaining and reading both the Disclosure Statement and the Lease Agreement, which are the two key documents when entering into a commercial lease. I go through the vital components you need to understand including the terms of the lease, the rent payable, the security options, your obligation to make good and the importance of being clear on your exit strategy.
As always, surrounding yourself with the right advisers to give you proper legal advice will put you in the best position moving forward. When you do this, you can rest assured you will enter into a lease agreement on terms that are fair, lawful and beneficial to your business.
Topics discussed and where to find them
[1:05]: How many small businesses aren’t taking the time to get the advice that they need
[1:58]: There are rules and obligations relating to what landlords can and can’t do when offering terms for a commercial lease
[2:35]: The two key documents are the Disclosure Statement and the Lease. You need them both.
[2:48]: The Disclosure Statement is a summary of the key terms that will be reflected in the sublease. You need to know what it says and read it with the Lease Agreement.
[3:11]: You need to understand the terms of the lease and comply with them.
[4:00]: One of the fundamental terms is paying the lease on time. This is vital.
[4:45]: The importance of providing written notice in the correct time frame to renew your lease
[5:55]: You need to know about rent
[6:30]: There will be additional costs for outgoings. Be crystal clear on what you need to pay.
[6:57]: Understanding your security requirements and who is liable.
[8:15]: Be clear on what you’re entitled to do and what you need consent for with regards to fitout. Understand “make good” and what this might cost.
[9:28]: Be clear on your exit strategy
[10:05]: Recap of all points