1. Understand the full terms that you are signing
Leases are complex legal documentation that have extensive terms and conditions within them.
Businesses need to ensure that they understand and wish to be bound by all of the terms before agreeing to them. Once agreed, both parties are legally bound by the agreement.
For complex leases it may be appropriate to seek the advice of a solicitor specialising in commercial conveyancing.
2. Understand your rights and responsibilities that you must comply with
Leases will require businesses to perform certain duties and comply with predetermined conditions.
If the business fails to uphold their duties and conditions, they can be subject to clauses regarding breaches of the lease.
3. Understand restrictions imposed on you
Leases are a way in which a landlord is able to control his property. This means that the lease will contain clauses stating what you can and cannot do.
Depending on the landlord, these can be wide or narrow restrictions.
4. Ensure the landlord has responsibilities towards you
Leases are a two-way street. The landlord receives money in consideration for giving your business a location to trade from.
Make sure you understand the lease and obligations of both you and your landlord.
It is always advisable to use plain language in your contract and talk to your landlord if there is something you do not understand.
5. Have a clear, concise and comprehensive lease in place
Leases need terms to be in place that are protecting of your business. Consequently, they should be clear and unambiguous so both parties understand clearly the lease, its purpose and requirements.
Liabilities and disputes can arise if not understood correctly.
