Aspects every tenant should know or do before signing a business lease

The excitement of leasing a new business property can sometimes get in the way of thinking clearly, and it’s for this reason that the Rawson Property Group has provided a few things to take into consideration before signing a lease.

According to Leon Breytenbach, national manager of the property group’s commercial division, signing a lease, whether long or short term, need not be a daunting task especially when a little effort beforehand will ensure a successful outcome.

Breytenbach advised community members to take their time and allow themselves enough time to consider all aspects and implications of the lease. “By entering into a lease contract without fully examining it, you could overlook minor or possibly even major inclusions or omissions,” Breytenbach said.

Read Living easy in Johannesburg

He explained that community members should not make their decision from a position of desperation – they should refuse to be hurried into a decision until they are satisfied that it is right for their business and that it contains all the necessary clauses.

Breytenbach advised business owners to get the lowdown on the landlord. “You will have frequent dealings with your landlord during the term of your lease, so it would be helpful to know a little more about them,” Breytenbach said.

He also advised business owners to meet the landlord as they would find it far easier to communicate with the landlord if they know him in person and not just as a voice on the phone or an email.

“It is very important to maintain a polite, professional relationship with your landlord at all times in order to create the best atmosphere for a successful rental negotiation.

“Remember, the way you conduct yourself during a property visit or via telephone conversations with the landlord is important, as it will reflect on you as a tenant,” he said.

Breytenbach advised business owners to know what is included in the lease. Some commercial properties include parking and utilities in the rental contract while others exclude them. “Ascertain which repairs or maintenance will be for your cost and what the landlord will cover. Confirm this with the landlord before signing the lease so as to be fully aware of how these financial costs will affect your budget.”

He advised business owners to find the optimal location for their business. “Your business will have certain specific locational requirements, for example, you may need increased foot traffic, a larger parking area or greater visibility from the road. If your employees or clients depend on public transport then your premises will need to be located near accessible transport routes.”

Breytenbach also advised business owners to conduct an inspection of the premises before signing the lease. “Once the landlord has offered you the option to rent the premises, be sure to document any pre-existing damage or deterioration before signing the lease.”

Lastly, he stated that every word of the lease must be read carefully. “Before committing your signature to the contract, be sure that your lease agreement includes all the points you have discussed with the landlord regarding any improvements that have been guaranteed.”

He concluded that it was important to discuss the contract thoroughly with the landlord to ensure that prospective tenants have a complete understanding of every part of the contract.

What other steps do you think people should consider before signing a new lease? Share your views on the Fourways Review Facebook page.

EDITED BY STACEY