So You’ve got everything ready to go with your new business – and now you just need to find the right place to help it grow into a prosperous & successful venture.
Leasing an business premises can feel like a big step if you haven’t done it before, but trust me, leasing a commercial property doesn’t have to be daunting.
The first thing to remember is that this is a business transaction. Just like any other area of business, it’s a good idea to seek professional advice – from both legal and business perspectives. And keep in mind too that the commercial leasing and sales experts here at Perth Commercial Property are also on hand to advise you.
Your lease cost will likely be one of your biggest overheads, and it’s usually a long-term commitment.
Small Business WA has a handy guide to leasing commercial property: from helping you to decide what you need, finding a place, and the leasing process itself.
Have a look at the full guide here
We’ve got some great tips to give you the inside running, drawn from our many years of experience
1) It’s common in commercial leases for tenants to pay some of the outgoing expenses, like rates, water and insurance. During the negotiations, be sure that you are clear on what your obligations will be under your lease
2) Don’t forget about the rubbish! We find that first-time lessees can forget about waste disposal. Council services sometimes don’t pick up rubbish at commercial properties, so remember to organise waste disposal through a commercial provider.
3) If you need changes made to the property to be able to run your business, or want a different fitout, ask us about your options. It’s common for owners to approve modifications, usually with the proviso that you reinstate the property to its original condition at the end of the lease.
If this is the case, make sure you get a detailed property condition report (or PCR) of the premises before the lease starts. You can also negotiate who pays for the fitout (often landlords contribute to fitout costs if it makes good business sense for them), and whether you can be granted access to the premises before the lease starts so you can undertake the fitout work.
4) Rent reviews are common in commercial leases. This is where the rent will increase after a set period, based on the Consumer Price Index or on a negotiated amount set in the lease.
You can negotiate on when these reviews start, such as after three years, and you can negotiate a pre-determined increase or a ‘fair market’ one. For commercial properties in Perth, the lease must clearly specify the basis for the rent increase calculation for each rent review period. If it’s a market rent review, both the tenant and the landlord can appoint their own valuer.