Top Tips for Securing a Business Premises
Securing business premises is one of the most vital aspects of any business launch. Your premises are at the forefront of your business.
Below are our top tips and advice about the process of securing your business premises.
When purchasing/renting any property, commercial or residential, one of the most important steps in the process is the research. If your knowledge of renting commercial property is limited then it is best to look into commercial letting agents’ websites to gain some understanding of the market and provide an insight into the commercial lettings on offer and the rental value for the type of letting licence you require. Business premises vary greatly and some are restricted as to the types of business they can be used for (although sometimes you can apply to change this).
Viewing the Premises
Viewing as many properties as possible will give you the best assessment of the property and will allow you to visualise your business. It is sometimes best to view properties before your business plan is complete as you can assess what extra costs may be incurred.
It is important to be aware of additional business rates. It is best to ask the letting agent about the rateable value of the property before you proceed.
Negotiations/seeking legal negotiations
Often leases can take months to negotiate. It is important to ensure that you have funds in place as you will need to instruct a solicitor to assist in the negotiations.
Common aspects to be negotiated include requesting rent-free periods to help reduce monthly outgoings whilst the business is getting up and running. Your solicitor will assist you with these negotiations and communicate with the other side on your behalf.
A lease for a business premises is very different to renting a property for your own personal accommodation. In many cases the Landlord will insist that security of tenure rights are waived. This will mean that you will have to vacate the premises as soon as your Lease ends. This could severely affect your business if your Landlord does not wish to renew the Lease.
You should never enter into a commercial Lease without seeking legal advice so that your rights and obligations are fully explained and that you have an opportunity to negotiate the terms.
Planning and Awareness of Costs
Planning ahead is the best advice. It is essential to have everything in order prior to the signing of the Lease. This will help to ensure that there are no unnecessary delays.