Do you need to have a business lease agreement?

Because of the risks involved in starting a new enterprise, some people prefer the business lease option instead. No matter if you are leasing your business or considering taking on a business lease, you will need to be sure your Business Lease Agreement is sufficiently complete.

Is it better to lease or own a business?

The answer may lie in leasing an already established business. When you lease a business, you can have the best of both worlds: the freedom to work for yourself with the stability of an established business. If this is the kind of step you are thinking of taking, here is what you need to know: WHAT IS A BUSINESS LEASE AGREEMENT?

What do I need to know about leasing a business?

Hire a lawyer (specialising in the leasing of commercial property) to discuss the legal aspects of your proposed lease. Discuss with your accountant the financial and tax implications of your lease. If your business is interstate, contact an adviser in your area.

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.

How is a lease to own house different from a purchase?

A lease-to-own house purchase is a lease combined with an option to purchase the property afterwards, within a certain period, at an agreed upon price. Leasing real estate can be different from other leases in that the residual value is often higher than when the lease starts, due to asset appreciation.

When does an option on a lease expire?

If the tenant waits until there are fewer than three months left before the lease end, the option will no longer be valid. It’s common, with term options, for the landlord to ask for a small increase in the rent during the next term of the lease. The amount is usually subject to negotiation.

How long should a 5 year lease be?

But you might be anxious about committing to a five-year term even though the longer lease period provides rent and location stability during your new business’s growth years.

Is it easy to get a lease back on a building?

If all the owners own the building, it is usually easy to arrange the lease since it is likely they all have identical interests. However, if only a portion of the owners are landlords, then the terms may end up being hotly contested and that is one of the dangers discussed below.