Pretty much all mainstream businesses need premises. And interestingly, most of them rent. Buying is often too risky and entrepreneurs can’t justify the capital expense.
However, many firms make mistakes when renting business premises. They adopt the wrong approaches, leading to higher-than-usual costs, inefficiencies, and many other issues.
Fortunately, this post is here to help. We take a look at the big mistakes firms make so you can avoid them.
Failing To Do Sufficient Research
Before you sign any lease agreement, you should do your homework and find out as much as possible about the property. You want to know everything there is to know to ensure it is a good fit for your business. Plans can fall through rapidly when things go wrong. And you can wind up with a significant liability on your hands if you sign a multi-year agreement for premises that are not satisfactory.
Not Having A Clear Budget
In addition, renting business premises can be a major expense for your company, so you should have a clear idea of how much you can afford and what factors that affect your costs. Don’t assume that adopting a tenancy strategy will automatically reduce operational costs.
For instance, you should consider the price of the security deposit, the utilities, the maintenance fees, and the insurance you may have to pay. You’ll also need to think carefully about any potential increases or changes in the rental amount over time. Landlords may increase their costs, which is something your business will have to absorb. A clear budget can help you avoid overspending and financial stress.
Failing To Invest In Security
Another significant mistake businesses can make is failing to invest in the proper security. Companies can sometimes take a relaxed approach to keeping their premises and data safe when renting.
Oculus Security recommends seeking professional assistance. You want security firms able to provide comprehensive protection around the clock. Criminals should not view you as a “soft touch.”
Failing To Check The Property’s Condition
Also, before you move into your new business premises, you should inspect the property thoroughly and make sure that it is in good condition. It should meet your brand’s standards, even if you are not consumer-facing.
Be sure to write down any existing issues and report them to the landlord upon arrival. See how responsive they are in dealing with them. If they don’t, you may want to take your business elsewhere or sign an agreement with a managed service
Failing To Read Lease Terms Carefully
Whenever you sign a lease, you need to read the terms carefully. Leases are legally binding contracts that define your rights and obligations as a tenant. You should understand every clause and term to make sure your business doesn’t get into trouble.
Make sure you consider:
- Subletting restrictions
- Termination fees
- Rent escalation clauses
- Liability waivers
All of these give landlords more power and can make your life as a business difficult if they decide to enact them. If you’re not sure how to read a lease carefully, get a solicitor to help you.