BLOG EIGHT

This Blog is for general information purposes only and does not contain nor constitute legal advice nor representation.

When renegotiating your lease or obtaining a lease for the first time you might consider some the following:

Are you willing to sign a personal guarantee. It is important to know what this means i.e. what are your responsibilities, should you file bankruptcy will the debt be a dischargeable one, will your credit be impacted thus affecting your ability to borrow funds.

What are turn key improvements. Who is responsible for their associated costs i.e. building supplies; architectural fees and drafts of the floorplan.

What are hold over fees? How much are they? Is there a hold over clause in your lease?

Can you sublease? What are your responsibilities and obligations?

What is rentable space vs. usable space? How is the landlord calculating their measurements?

What are the operating expenses? How often are they charged? What is the breakdown of the operating expenses? Do you benefit from them? Is their a ceiling/cap for the operating expenses?

Are you responsible for an increase in utilities that are provided in your lease i.e. electric, water. What time does the air conditioning or heating turn off in your space? Is there a shut off time? If so, what is the additional charge for usage after the shut off time? Will your IT equipment be affected by the lack of utilities during specific times?

Are you responsible to provide lease insurance? Are you to ensure that the landlord is covered for any damage that may occur?

These are a few of the areas to consider when investigating a new space. Read any lease you sign carefully before signing. Make sure you sign correctly i.e. business member or individual.