So to appease the sales manager let me say our Lease Agreement Packages for Commercial Premises are great. They are ideal for the owners of offices, factories and industrial properties. Experienced commercial property landlords will be delighted by our agreement kit. In fact they are so good you should download one of our Commercial Property Lease Packages right now by clicking here.
However, if you are new to Commercial Property Leasing Contracts you should read on.
Your first Commercial Property Lease - should you do it yourself?
So you have just bought your first commercial property and you have arrived at our site to buy a contract for a commercial property lease. You have found a tenant and you are feeling very pleased with yourself. Let's just get the paperwork done and the rent will start rolling in.
While our contract for the lease of commercial premises is an excellent document and is specially prepared to protect your interests, maybe you should just take a few seconds to see if it is the best solution for you.
What experience do you have?
Have you ever owned your own business? Have you ever rented commercial premises as a tenant? If so, you will be aware of just how commercial property lease agreements differ from residential tenancy agreements.
Do you understand the importance of getting directors' guarantees? Do you realise the guarantee is worthless if the directors have no assets to back the guarantee?
What about disputes? No government agency is going to mediate the differences between you and your tenant. This is solicitors at fifty paces.
80% of all new businesses fail in the first 2 years.
As a landlord of commercial property that figure has to scare you. 4 out of 5 tenants (if they are new businesses) on average will not complete the term of their lease. You may be thrilled that you have a 3x3x3 lease agreement but the figures say most new business owners will not even make it to 2 years. Often by the time the alarm bells have sounded your guarantee is probably worthless. They have hocked their house, borrowed money from anyone that will lend it to them and become skilled at avoiding their creditors.
Having a guarantee means you do get some priority when the liquidator is dividing up the remains but the chances are slim you will be happy with the outcome.
Choose a good tenant
You can see just how important it is to find the right tenant. And don't be in awe of the size and reputation of the conglomerate offering to rent your property. I am sure landlords of HIH were fairly confident they had chosen well. They probably were less concerned with the diligence of their background checks than if it was Joe the plumber.
If you have a choice between a start up and someone who has been in business successfully for years the choice is obvious.
Your success is intimately tied to their success. You are in business with your tenant and you need to do everything you can to ensure they thrive.
If you are not confident with your ability to thoroughly investigate your tenant's worth and ability to pay then get a solicitor.