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Read the clauses in a commercial rental lease before signing

Commercial real estate transactions can be tricky, especially for a new business owner. You have to carefully scrutinize the leases that come with rental spaces for businesses because there are often clauses that could cost you considerable money. We understand that you might not know what you need to check for, so we are here to help you out.

One thing that some business owners don't realize is that there are some big differences between commercial and residential leases. A commercial lease might include a clause that adds in additional costs for the renter. For example, it is fairly common for restaurant rentals to have a clause requiring the restaurant owner to share a portion of the income from the business with the landlord. This is on top of the regular rent.

As you can imagine, having to share your profits probably isn't something that you would want to do. Many business owners would prefer an arrangement where they can just budget in a flat rate for the rental space.

Another point that you have to think about is what all is included in the rent you pay. Some commercial leases don't assign every responsibility to the property owner for upkeep of the property. This could mean that the air conditioner being repaired is an expenses that falls partially or fully on you to handle. Make sure you check for clauses for specific circumstances, such as plumbing needs.

We know that you are ready to just get your business going, but you can't let this desire lead you into a commercial rental that is going to be a money pit. Instead, take your time reviewing the lease and let us take a look to help keep your business protected.

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