What are the factors to be considered in own or lease decision?

The decision on whether to buy or lease is dependent on number of factors such as duration for which such an asset would be required, the returns that the business will generate on the asset, type of asset and related technological developments etc.

Why do I need to lease space for my business?

Perhaps your business has grown quickly and you need to lease a space to accommodate your increased client base. Or, if you’re opening a time-sensitive business such as a school, you could feel pressured to be up and running in September, and that could affect the way you handle negotiations.

Do you think location matters when starting a business?

Others believe that location doesn’t matter provided the product is right. However, getting a good location is very critical to the success of your business but this can prove quite difficult because one of the challenges of starting a business successfully is getting a good business site. 1 What Can a Good Location Do for your Business?

What happens to a lease when a business is sold?

This means when the business is sold, the seller will need to create a lease assignment which transfers their interest in the commercial lease over to the buyer. In other words, the buyer will take over all the obligations and interests that are still attached to the seller’s lease agreement with the landlord.

Can a sublease be used to sell a business?

With a sublease, the seller is still retaining their responsibility for the master lease that they have with their landlord. At the same time, the seller would be creating another lease with the person who is buying their business. This is what a sublease would be in this situation.

How does a lease to own business work?

In a lease-purchase agreement other separate agreements might also be included, essentially option to buy contracts and lease agreements. In case the seller might be after an outright purchase of the seller’s business a purchase contract could also be a document required in the process.

How does a lease back work for a business?

The owners of the business purchase property and lease it back to the business they operate, collecting rental as any other landlord. Usually, the business-tenant is a limited liability entity (Limited Liability Entity) which signs the lease with the owner who may or may not incorporate or become a limited liability company.

Can a landlord sell a business while the lease is still active?

Perhaps your landlord sold the commercial property that your business is in while the lease agreement is still active. Maybe one of their relatives actually owns the property on paper and they are just acting as the landlord. As the seller, you’ll want to make sure the person you know as the landlord is actually the owner of the property.