Whether your firm wishes to take on new staff or expand its operation with improved facilities, moving to new office space could be the smartest move you make. However, even in the tenant-friendly economic climate that Canadian business is enjoying at present, a bad lease can kill your business. Today we will look at the top five myths about leasing office space in Toronto. Here’s how to avoid bad leases and set your business on the right track.
Myth #1. A Company’s Legal Department Is Best Placed To Review A Lease Deal
Many firms use their in-house legal staff to consider various merits of lease deals. In fact, realtors and leasing experts are essential to help your firm see various aspects of potential deals. Although they charge a fee, they will negotiate an outstanding deal on the building you wish to lease.
Myth #2. Commercial Tenants Are Legally Protected
If you are inexperienced in negotiating a lease, it is easy to let your emotions get the better of you. These weaknesses combined with an inflexible landlord can produce some disastrous leases. You must always take the right legal counsel to protect yourself as there are no laws protecting commercial tenants. Business owners who have experience leasing office space can recommend the realtors they use when they need real estate and help you avoid bad leases that could sink your business.
Myth #3. Landlords Can Refuse ‘Out’ Clauses On Short-Term Leases
While most landlords prefer commercial tenants to sign long-term leases, they usually give concessions to secure them. These may include rent-free periods or tenant fit-ups at no expense to the tenant. If your business needs a shorter lease, it is a myth that landlords can withhold an option to sublease or an option to sell the business and assign. They may stipulate written permission is required but they cannot refuse to offer ‘out’ clauses in the contract such as options to renew.
Myth #4. You Don’t Need Zoning Permission From The City Or Township
While a landlord may insist that your company is eligible to take up the office space you are looking at, they aren’t in charge. You must always seek permission from the city official before negotiating a lease. If you fail to do this, the time you spent negotiating will have been wasted. An experienced realtor who is used to negotiating leases with landlords will be able to help you avoid this scenario.
Myth #5. Believing That There Is A ‘Standard Business Lease’
If you are ill-prepared or have access to very poor attorneys, you may believe that you are signing a standard business lease. In fact, no such lease exists and all leases can be negotiated, clause by clause if needs be. One company advertising office space for lease in Toronto advises that businesses should always seek the best legal counsel they can afford and secure the services of a reputable broker. Networking is invaluable as contacts in your industry will be able to recommend their go-to guy who deals with their real estate needs.