As the saying goes, "Location, location, location!" This is one of the many obstacles small businesses face. Choosing to rent or lease instead of buying a building can save a business money, but a poorly constructed lease agreement (from the renter's point of view) may end up costing the tenant a lot down the road.
An article on enterprisecanada.com offers ten questions to ask before signing a lease. Here are the questions:
1. How Long Will the Lease Run?
2. How Much Is the Rent?
3. How Much Will the Rent Go Up?
4. Can You Sub-lease?
5. Can You Renew?
6. What Happens if your Landlord Goes Broke?
7. Who's Responsible for Insurance?
8. What Building Services Do You Get?
9. Who Else Can Move In?
10. Who Pays for Improvements?
11. How Much Space Are You Really Renting?
Although there are actually eleven questions presented in the article, it is a good general guide to learn the basics about different types of lease structures and what one is in for when they choose to lease. Under each question is a brief summary and description as an answer. To read it in its entirety go here.
Another resource for those looking to rent commercially is mondaq.com's article, "Issues That Arise When A Default Either Has Or Is About To Occur Under The Lease." They go into a bit more detail of what different circumstances call for from both the tenant and landlord point of view. It is not light reading. On the other hand, it's chock full of great information and nuggets like, "The landlord should be proactive if there are any indications that suggest the tenant's business is not performing well, including anything mentioned in casual conversation." Meaning as a tenant, you may want to be tightlipped about the status of your business during any conversation with your landlord… or else! Like residential leasing, commercial leases disputes arise and end up in the courtroom.
If under such circumstances, find a lawyer for Toronto lawyers, Vancouver lawyers, and local lawyers by visiting http://www.lawyerahead.ca/