Here are a few final steps for preparing for productive lease negotiations:
#5 Try to Build in Clauses to Protect Your Business
In order to protect you business interests and investment in the long term, consider trying for some additional clauses to the lease that would favor your business. Here are a few examples:
- Subleasing options – In case your business plans change, you might want the option of subletting your space to another business.
- Co-tenancy – If a property has an anchor tenant and that tenant chooses to leave unexpectedly, this clause can help protect you from losing customer traffic by stipulating that the landlord must find a replacement tenant in a specified amount of time, or you are allowed to break your lease.
- Exclusivity clause – This clause prevents a landlord from leasing property to another business that is in direct competition with yours.
Businesses are often shut down because of defaulting on their lease. Avoid this by knowing what you have agreed to upfront. Find out whether you will be locked out immediately, if you can negotiate for more time, and if you could be released from paying rent for the entire term and instead just pay for that month.
These tips are a good place to start if you are not sure how to proceed with your lease negotiations. A little research and advanced preparation can have a big impact on your tenancy in a space!