Establishing a business lease in Illinois requires care and a lot of attention because you will be selecting a place to operate your business and a wrong selection can have severe consequences if your business is influenced by its location.
Selecting the right location, the right premises, with sufficient space for all operations carried out as well as necessary space to accommodate expansions if any in future is essential.
Commercial Lease in Illinois: The next important consideration is the type of lease offered by the lessor such as, gross, net, percentage or graduated lease.
A gross lease suits a tenant the best as he just has to pay a base rent, which includes all expenses incurred such as operating, insurance, utilities, maintenance etc.
and the lessor is responsible to pay for them.
Some lessors will offer a percentage lease, which is not very popular with the lessees.
The term of the lease, renewal options, the security deposit, the method of payment, the rate at which the rent will be increased etc.
have to be clearly defined and discussed by both parties.
The lessee has to comprehend the terms of the security deposit and the conditions, which cause it to be used by the lessor, properly.
While establishing a business lease in Illinois it is better that both the parties inspect the condition of the building and sign a document stating its exact conditions before it was occupied by the tenant.
The tenant can negotiate with the lessor or himself take care of any changes or alterations needed before commencing operations.
It is the tenant's duty to repair and maintain the building during the term of the lease and both lessee and lessor have to pay property taxes for their personal property in the premises.
The lessor has to provide adequate fire and general insurance and the lessee will be held responsible for any fire damages caused due to negligence and will have to bear the cost that the insurance does not cover.
Both the parties need to have general liability insurance.
The period for the issuing of lease termination notice has to be as per the State Laws.
The tenant has to obey all the building rules as well as the rules regarding parking space and common areas.
The tenant has to get permission from the lessor before installing any signboards or hoardings and will agree to pay for taking them down as well as repair any damage caused by them at the end of the lease term.
The lessor has the right to visit the property for inspection and the tenant is assured his business will not be hindered by the lessors visit.
The lessor has the right to display a to-let board in a window of the premise 60 days prior to the expiry of the lease etc.
Establishing a business lease in Illinois therefore is a lengthy procedure requiring the guidance of any experienced attorney.
There are firms that sell their services as well as products to help run a business successfully.