Unless you’re running your business from the comfort of your home, you will probably need some sort of premises from which to run your business. Choosing whether to buy or rent is an important question to asking, as there are obviously advantages and disadvantages to both.
Buying the premises can be beneficial if you are looking for a very particular setup. If you have the money and do not need this money to fund the business, buying might be the right option. For newer business, with limited cash flow and ongoing funding constraints, buying the premises would be unwise. You will not have any money to fund your business, and will not experience the commercial growth you may need. Buying also means you will have to maintain the property, which will take up your valuable time away from growing the business. Finally, there is always the risk that the property will depreciate in value (although this is not very likely).
If you end up buying the property, you will definitely need some legal assistance. The process can be complex and has many stages. There are also a number of risks that a lawyer can help you avoid.
If buying your business premises doesn’t tickle your fancy (or you simply cannot afford it), perhaps renting would be a more favourable option. By entering into a lease with a landlord, you alleviate yourself of the pressures of maintaining the property. You also give yourself more wiggle room if you decide to move to newer, larger (or smaller) premises, and you know exactly how long you will have in the one area. As a tenant, you are afforded certain rights. These rights protect you from being ousted by your landlord or from having the landlord enter the premises without first providing you with adequate notice.
As part of renting, you will need to enter into a Commercial Lease Agreement with the landlord of the property. Although these agreements are fairly standardised documents, it is important to consult a lawyer about reviewing the terms of the agreement. Our lawyers here at LegalVision can review or draft this document for an affordable fixed-fee.
Licence or Co-Share
If you want an even more affordable option and you’re flexible about sharing your working space with other businesses, a co-working environment or shared office might be the most appropriate option for your business. Normally you only have to sign a fairly simple licence agreement, which permits you or the landlord to end the agreement with one month’s notice to the other party. This ensures added flexibility and mobility so you can adjust to changing business conditions.
If you need help buying a commercial property for your business, or wish to enter into a commercial lease and need the lease terms reviewed, our business lawyers at LegalVision can certainly help. Get in touch today on 1300 544 755 and enjoy a free consultation with our Client Care Team.