The rent of the commercial premises

2 Julio 2009 - 22:19

The decision to rent or to buy the premises for a business mainly depends on the capital or the capacity of financing that is had.

Buying the premises offer the advantage to tell on tangible assets that we could take as an investment in the long term.

Whereas renting the premises offer the advantage to reduce the initial investment considerably, and to diminish the risk; although it presents/displays the disadvantage to have to permanently pay a high amount like rent by assets that never will be ours.

To buy the premises would seem to be one better option, but unless we count with sufficient capital or financing like buying one, the renting appears like a good alternative.

The costs of rent of the premises vary following the location of this one, while nearer it is to commercial sites, majors will be the costs; and while more moved away it is, smaller they will be the costs, but also, the public who circulates around the zone. A good alternative could be to obtain the premises located in the limits of the commercial areas.

As far as the rent contract, we must always have much taken care of at the time of signing it; the renting contracts usually are somewhat complex, and to commit an error when signing them could leave to us very expensive.

Some aspects that we must take into account before signing a renting contract are:

Duration of the contract

A contract of short duration could diminish the risk, since we would not be forced to continue paying the rent, in case the business does not get to prosper. But, on the other hand, he could be a disadvantage in case the business gets to prosper, and the owner of the premises decides to retake his premises or to increase the price of rent.

And to sign a contract with a term long play, could assure not having to vacate the premises so quickly to us in case the business gets to prosper, and the owner would not want to renew the contract to us. But, on the other hand, he could be a disadvantage in case the business does not get to prosper, and we must continue paying the rent; although this could be solved subleasing the premises or selling the business to him to a third party; but as long as the contract includes a clause that allows it.

The amount to pay

The amount to pay by the rent, usually is a fixed amount that must be pleased monthly; nevertheless, in some cases, for example, in some commercial centers, the amount to pay by the rent could depend on the sales that the business obtains: a monthly fixed minimum amount settles down, and then, the payment of the rent according to the sales is increased or fallen that the business generates.

The recommendable thing is to look for a fixed payment of rent, mainly if the term of duration of the contract is long.

Clauses of exits

Clauses of exits are clauses that normally are included in the renting contracts, that allow us to be exonerated of the obligations of the contract if certain unfavorable situations occur.

We must try that the contract contemplates to the greater number of clauses from exit to favor ours, and thus to diminish the loss that can have in case the business does not get to prosper as we hoped.

The clauses of more common exit or escape, and than we would have to try to obtain are:

• possibility of selling or of transferring the business: possibility of selling the business, but of continuing being we them responsible by the payments for the rent and any lack that the new owner of the business commits.
• possibility of transferring the property of the contract if we decided to sell the business: possibility of selling the business and, simultaneously, of transferring the contract of rent to the new owner of the business, assuming he it responsibility of the payment of the rents and the care of the premises.
• possibility of yielding the contract of renting to a third party: possibility that, for some reason, we transmit the rights and duties of the contract to some third party.
• possibility of subleasing the premises: possibility of renting to a part or the total of the premises, to a third party.
• possibility of cancelling the contract if for some reason the business cannot be abrir: for example, in case they do not get to us to grant the license of operation or some other permission.
• possibility of dissolving the contract in case the business does not prosper: clause that is little probable that the owner of the premises accepts, but that can be gotten to obtain through a good negotiation.

Works and improvements

Besides the exit clauses, another aspect that we must take into account at the time of signing a renting contract, is the work accomplishment or improvements in the premises.

We must try to include in the contract the agreements that we have arrived with the owner of the local one on works or improvements that could be needed will realize, we must indicate which we, which we cannot do, which would have to realize the same owner of the premises in case they are necessary, etc. can make.

To look for legal consultant's office

And, finally, something that we would have to consider before signing a renting contract, is to count on the aid of a good lawyer with experience in the subject.

The renting contracts usually are somewhat complex, and a committed error could be detrimental for our business, reason why always he is advisable to tell on the consultant's office of a good lawyer, that it avoids to us to commit errors at the time of signing it, and it tries to secure the best possible conditions to us.

Labels: Advice, Creation of businesses

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Related contents:

1. To rent or to buy the commercial premises
2. Advice before signing a contract of premises renting
3. To rent the premises in a commercial center
4. Recommendations when choosing the location of the premises of a business
5. Factors to consider when choosing the location of the premises of a business