Commercial lease negotiations can be a minefield. One wrong clause, and you could be locked into a costly commitment that stifles your business growth. Whether you’re signing a new lease or reviewing an existing one, here are the top pitfalls to avoid:
1. Not Reading the Fine Print: Lease terms can be complex. If you don’t fully understand clauses around rent reviews, renewals, or permitted use, you could be in for some nasty surprises.
2. Underestimating Total Costs: Rent is just the beginning. Outgoings like rates, insurance, and maintenance can add up fast—especially if you’re responsible for landlord legal fees too.
3. No Renewal Rights? No Security: Without a right of renewal, your landlord could refuse to extend your lease—even if your business is thriving.
4. Rent Reviews That Bite: Uncapped CPI or market-based rent reviews can lead to steep increases. Always negotiate review terms that protect your cash flow.
5. Who Fixes What?: Ambiguity around repairs and maintenance can lead to disputes. Make sure responsibilities are clearly defined.
6. Skipping Legal Advice: Trying to DIY your lease to save money? It could cost you far more in the long run. A legal expert can spot risks you might miss.
Don’t leave your lease to chance. If you’re unsure about your lease terms—or just want to make sure you’re getting the best deal—we’re here to help.
Call us today or email Ali Dymond for a no-obligation chat.
