For new business owners in Connecticut and other states, one of the most important parts of setting up a brick-and-mortar business is getting that first lease. The lease for the premises will be one of the biggest costs that you have to manage.
Types of leases
There is a lot to keep in mind when it comes to your first lease. For example, there are different legal kinds of leases depending on how exactly the landlord and the tenant divide all the various costs. In a net lease, the tenant pays taxes and utilities while the landlord pays insurance, repairs and maintenance. In other kinds of leases, more of these costs might fall on the tenant. The amount of each cost depends on what kind of business you run, so it is important to understand how that line of business might affect building costs.
Another key consideration is size. Every business, from a restaurant to a doctor’s office to a store, has a unique requirement for how many square feet of real estate it needs. How many rooms does it need? Is there a need for soundproofing or other preparations? Are there any large pieces of equipment? Will the business need onsite storage? Does it require special ventilation or temperature controls? All of these should factor into finding the right space, and anything of this much importance should be mentioned in the lease. It’s also critical that the lease has an out clause, which provides a way to break the lease if things go poorly at any point.
The first lease is an exciting document because it helps business owners finally open their retail store or other space. However, this contract has to be done right for the business to succeed.