If you are a first time, start-up business owner and you are considering signing an offer to lease or the lease itself, please before you do any of that come in and see us for proper advice.
A lease is a very significant and binding contract with a substantial opportunity but largely in favour of the landlord and not the tenant.
It is also likely to be the single largest financial commitment you will make after buying a house.
Just for a moment consider not just the monthly rental and outgoings which could be $2,000 - $7,000 a month or more.
The commitment you are making is that amount x the number of months of the lease term.
So that could be 36, 48, 60 or 84 months. So in reality we are talking about a binding legal agreement of $80,000 to $600,000 in total.
It is not a level playing field and there is nowhere to hide if your business does not plan out as you believe it might.
In the event that your business goes away the financial commitment does not.
None of this should be overlooked even when you are offered rent free periods or contributions to fit-outs and other inducements.
This should not be an arena that a small business owner with very limited financial resources and no prior experience should be operating in. Of course the landlord or managing agent will not tell you that information - your due diligence is what is required to be fully informed.
![]() I want to be able to understand what the numbers mean to my business. |
![]() We keep getting conflicting advice. We just need the facts. |
![]() I just don't have the time to cope with all the paperwork. |
Leasing of Retail Premises or Commercial Premises by small business owners
Chris Gray - Wednesday, May 11, 2011
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