5 Pro Tips for Securing the Perfect Small Business Rental Space

5 Pro Tips for Securing the Perfect Small Business Rental Space

Not long ago, we discussed some key factors to consider when choosing the right location for your small business. While those points are still crucial, there are additional details to be aware of if you plan to rent or lease.

First, don’t just take things at face value. Landlords are keen to avoid having empty spaces, which gives you some leverage in negotiating better terms. You might be able to push for included utilities, flexible lease durations, lower rent, or an agreement to keep rates steady as long as you’re a timely payer.

It’s essential to seek advice from professionals like realtors, agents, or lawyers, as they can help you navigate the complexities of rental contracts. They can identify potential pitfalls and assist in negotiating renewals, expansions, and termination rights.

Prior to signing any lease, make sure to gather information about the landlord. Talking to other tenants can provide some insight, especially if you’re renting in a multi-unit space. Additionally, it’s wise to ensure the landlord is financially secure. Ownership changes or forced relocations can significantly impact your business, so taking steps to verify the landlord’s financial health is necessary.

Typically, business owners are required to pay a deposit before moving into a rental space. This deposit, often amounting to 10-15% of the total lease, helps cover any potential damages or unpaid rent. Be prepared for this upfront cost.

A comprehensive lease agreement should outline various details such as the rent amount and any planned increases, lease duration, renewal terms, who is responsible for utilities, maintenance, insurance, and taxes, a formal description of the rented space and its condition, a list of improvements to be made by the landlord, subleasing terms, and termination conditions.

Starting a new store is an exciting milestone for any small business owner. Ensure you protect yourself by thoroughly understanding and negotiating your rental contract or lease before making a commitment.