Without a doubt, renting an industrial space is quite a responsibility that requires much of your effort. The success or failure of your business rides on some of the terms of a lease. Therefore, you need to be meticulous in the process of leasing. Some of the most fundamental things that you need to know are the different types of leases available in the market and their legal requirements. The terms and conditions that you are going to get for a residential lease are different from an industrial space lease.
You should also factor other vital elements such as the amount of rent, lease duration and the setting of the industrial space. All these important elements will put you in a position to make the most crucial choices for your business. Here are some useful information about industrial space rental:
Distinguishing factors for industrial space
A number of things will make an industrial lease distinct from the rest. The first one is about consumer protection laws. Unlike residential leases where there are quite numerous consumer protection laws, the lease for industrial space is not subject to most of these laws.
The basis of other leases is usually on a standard form. There is one uniform procedure on how things should work for them. Industrial space lease operates differently because it relies on a property owner’s needs, which are usually customizable. In that case, it is imperative to assess any industrial space lease carefully offered to you by different proprietors.
The other thing about the industrial lease is that it is more often than not a long-term and binding agreement. A good deal of your money is often at stake and as such, a legally binding contract is essentially mandatory. Therefore, once you put down your signature you have to live by the terms and conditions of the contract for the stipulated lease period.
Lastly, industrial space lease offers you the opportunity to negotiate. This is because most landlords are actually eager to extend special offers to their tenants. As a tenant, your business needs certain vital office space features to operate smoothly in a business-like environment hence the need for negotiation regarding rent, maintenance and modification.
Can the lease fit to your business needs?
When you carry out proper investigation on the terms of a lease, you will be in a position to know if it meets the needs of your business. First, you need to inquire about the amount of rent that you will be required to pay monthly. The rent needs to be within your financial budget. Secondly, you need to determine the exact duration that you will have the industrial space leased to you. The last thing you should do is tie yourself into a ten-year lease contract when you can help it.
Certain things tend to impact your business over the course of time either positively or negatively. For instance, the location may not favor your business after some time or the business may grow very fast forcing you to look for a bigger space. To be on the safer side, it is recommendable to go for a short-term lease that offers you renewal options after the lease period is over and you still need to use the industrial space for your business.
Terms addressed in industrial space lease
In an industrial space lease, many items are addressed. It is important to pay attention to them to ensure things go well for your business. Look for the lease term that is the period that the lease exists. Note its commencement and whether you have renewal options at your disposal. The next thing is obviously finding the amount of rent you will pay monthly.
In this regard, inquire about allowable increases and the process used to compute the final figure. Security deposits and the refundable terms need to be on your fingertips as well. The other crucial thing that you should look out for is the amount of industrial space offered to you and the criterion used for measurement. Some landlords may actually include wall thickness in measurements.
You need to find if there will be any modifications to suit your business and who will pay for the finishes, additional fixtures and who the owner will be when the lease expires. The specifications on signs used for your business are important to note. Ensure the landlord does not lease essential sign space to a potential competitor. Lastly, find out the way forward to resolving disputes that may arise over time –through mediation or arbitration without necessarily involving the court.
Over and above all, you have to go through the terms and conditions of an industrial space lease severally to be certain of every crucial aspect in it. It will help you iron out some of the issues that may arise in the future regarding services, security and usage of signs for the business. You will also be in a position to confidently sign a lease that will make your business successful.