A Renter’s Guide to Commercial Leasing!

A commercial lease is a legal or binding agreement between an owner and a tenant. Even though renting is a simple business relationship, it is still crucial to follow certain guidelines during this process. Without the proper guidance, this procedure can be long and somewhat unpleasant.

  • Consult a Lawyer – A rental document is not just a piece of paper; it is a compilation of legal agreements that consists of an average of 25 to 70 pages. Some clauses that may be included on these documents are standard, while others may not be familiar to the renter. Other standard forms may not have the essential elements for both the landlord and the tenant. Therefore, seeking the advice of a lawyer is important. In addition, attorneys can handle all of the negotiations and technicalities as well as assess any specific requirements the tenant may need and provide a final legal agreement.
  • Choose a Suitable Location – The success or failure of a business can be determined by where it is situated. Once all of the commercial leasing requirements have been determined, it is time to proceed to research and look for a suitable space. In addition, it is important to check the market and determine that the potential office space is available and suitable for the occupancy.
  • Find a Reputable Broker – It is important that the finalization of a commercial lease be handled professionally. Such an important undertaking requires the services of a reputable broker. An agent should be chosen who has many years of experience in commercial leasing. Real estate brokers can help find the right location as well as examine the market.
  • Negotiate the Lease Agreement – Everything is negotiable in a lease agreement; however, this can be a daunting task. It is necessary to understand and assess the agreement to avoid any problems in the future. Both parties should arrive at acceptable terms that meet individual needs. All agreements should be verified for correct terms and conditions as well as the total costs involved prior to endorsement by both parties. It is essential to remember that once the agreement has been signed, it binds both the landlord and the tenant equally by law. This is why once an agreement has been negotiated; it should be thoroughly inspected for accuracy.
  • Insurance – An insurance policy from the landlord may be required by the tenant prior to final execution of the contract. If payment of the insurance premium is required of the tenant, a comparison of normal costs for such a charge from other insurance companies should be done. This way the tenant can be sure that they are not being overcharged by the landlord for this cost. It should also be determined if the coverage afforded by the insurance is anticipated to change any time in the future.
  • Providing all Pertinent Information – Every tenant should ensure that all relevant information regarding this agreement has been provided; it should also be verified that the use of the commercial space complies with the agreement. In addition, it must be confirmed prior to the execution of a lease if there are any alterations that must be performed prior to occupancy by the tenant.

A legally binding contract, such as an office lease, should be beneficial to both involved parties. It should not be automatically presumed by a tenant that the landlord is willing and able to comply with all the terms written in the contract. Even the lease code does not provide a renter with the full protection necessary for a business to function. Any tenant should be pro-active and obtain a renter’s guide to effectively manage their commercial lease – then there will be no upsetting surprises!

A Guide to Commercial Leasing

Although commercial leasing is a common affair, it’s very important for the owner as well as the tenant involved, to be fully aware of the process of leasing a commercial property. Before going any further, it’s important you understand the ‘what’, ‘why’, and ‘how’ aspects of commercial leasing.

Here are a few points that you should keep in mind while hunting for a commercial property or leasing it out to another.

Meaning of Commercial Lease

Commercial lease is an agreement between the owner and the potential tenant, where the former’s property is leased out for commercial usage. It could imply either leasing of an office space, or an industrial or commercial building. It includes certain rules and regulations that the tenant has to agree with, in order to avail the commercial property.

The tenants who want to use the commercial space for business purposes cannot partake in any illegal activities in the workplace rented by them. Although this agreement doesn’t have a standard form, it can follow any structure as long as it covers the important aspects of the agreement.

What the Owner Should Know Before Leasing Out the Property

While renting out a property to a potential tenant, the owner should have a thorough knowledge of the details of the agreement. In addition, he must also be well versed with real estate jargon.

It is necessary for the owner to get to know his tenants personally before renting out the property to them. Furthermore, the owner should have made a Request For Proposal before leasing out the property.

What the Tenant Should Know Before Signing the Leasing Agreement

It is absolutely essential that the commercial property suits the requirements of the potential tenants. They should discuss the payment of rent and other important factors related to the property with the owner, before signing the agreement.

Reading the terms and conditions carefully beforehand, can help eliminate any confusion later on. Needless to say, the tenants need to make sure that they don’t violate any terms of the agreement. Trouble of any kind caused from their end can lead to the termination of the agreement.

For How Long the Commercial Leasing Agreement Stays Valid

The commercial leasing agreement doesn’t have any fixed time period. It can go on for any length of time and can even last beyond three years. It is up to the owner to decide the tenure of the agreement’s validity, before leasing out their commercial property.

Your Guide to Using Credit Card Machines For Your Business

It is now impossible to enter any business and not notice some sort of Credit card machines. It is not an overstatement to note that in many circumstances, they are critical components, that will have a profound effect on the ultimate survival of the business. Credit card machines mean much more than the ability to process payments, but they also includes the all-important managing of cash-flow, which is the life-blood of any business.

A few ancillary items are needed in order to begin accepting credit cards. The primary item that the merchant must have is a merchant account, which is simply a bank account that the merchant uses to process transactions with payment cards.

As a merchant, you should appreciate the fact that there are different types of credit card machines. They are available in different sizes, and work with different formats, but the underlying principle remains the same.

The most affordable are the basic units with a minimal amount of features. Some machines incorporate aesthetic design, for ergonomics or easy handling features. There are also some models that include a printer, and there are wireless credit card machines that can operate anywhere.

The important parts of the machine are most likely to be the reader. The information can be read when the card is swiped, or when read from the embedded chip. Depending on your service provider, you may be required to pay higher charges, with machines where the information must be manually entered.

Apart from the hardware, the equally important aspects to ensure efficient payment processing, to first ensure that your credit card machines complies with PCI DSS. The Payment Card Industry Data Security Standards are a set of controls that are set by the council to ensure and enhance security in the card payment industry. They are a rigid set of controls that must be met by those involved with card payments.

Your merchant account provider should provide all of the assistance needed for installing your credit card machines. It may be a simple operation that requires nothing more than plugging it in, and attaching a few cables, but you should also ensure that it operates as it should. Improper use or inadequate training may result in you paying unnecessary charges, or declining legitimate purchases, and the ultimate loss of sales.

The arrangements or terms offered by your card payment processor are also very important. You may be offered arrangements that include leasing, leasing to own, or an outright purchase contract. It is up to you, as a merchant, to determine which alternative is most suitable. Although purchasing is usually recommended over leasing, it may not be the best option, it your cash flow, will be affected.
Remember everything thing is negotiable, you can only obtain better terms if you ask for them.

When choosing a service provider, it is always to your benefit to check with the Better Business Bureau. A high amount of unresolved complaints can be in indication of problems, and it may be better to seek the service elsewhere.