Pitfalls to Watch Out for in your Commercial Lease

If you are looking out for a new property or if you want to make sure that the property you are looking out for is right for your needs then there are a couple of things that you need to look out for. Unfortunately, a lot of businesses end up losing out on a ton of money every single year because of their lease so if you want to avoid all of this or if you want to make sure that your lease is solid then there are some things that you can do about this.

Rental Reviews

When you undergo a rental review, this will be an assessment of the rent that you are paying. There is a high chance that you will undergo a rental review when you have a very long lease and it can make all of the difference to your financial situation. Reviews can be very complicated and they can even contain a variety of different factors as well. The main review that you will face is the open market review and this means that the rent that you pay is put up for negotiation. If you find that you are being put up for rent reviews a little too often then make sure that you keep an eye out for this and even hire a solicitor to talk you through the process. Some landlords want to charge you more than they have to because they know how important your property is to you and they also know how many customers you’ll lose if you do happen to move. For this reason, it helps to monitor your reviews to see if you are overpaying, being put under review too often or if you are being put up for a review before you are actually due to have one.

Repairs

Another thing that you need to look out for is the cost of repair for your property. You also need to look out for the cost of insuring it as well. You have to understand who is responsible to make any repairs if something should go wrong. The wording in your lease is everything here, and it also helps to find out what the definition of “repair” is according to your landlord. Some people will try and pin more responsibility on the tenant so that they can come away with more profit at the end of the term and this is another factor that could be brought up during your lease negotiation as well. If you want to avoid this then make sure that your repair clause is clear and that you understand your own degree of responsibility. When you are aware of this information and what you are entitled to do if something goes wrong, you can then start to prepare for the future.

Lease

The lease really does need to fit in with any objectives that you have in the long-term. If you happen to commit to a long-term lease then you will not be able to downsize or even upgrade your property during this time. You may not think that this is a problem, but if you are taking out a lease for more than a couple of years then this can be a serious concern. You need to plan ahead in this instance and you also need to be aware of any company expansion plans that you have as well. Remember that a couple of years is a very long time when you run your own business and if you happen to rocket in terms of your profit then the last thing you’ll want to happen is for you to be stuck in one building for the next 5 years.

Location

When choosing your rental property, the location is as important as the building itself. Property search engines such as Howard Hanna are great in this instance and they can give you a  good idea of what is available on the market while also helping you to know if there is anything that you can do to really benefit from what is in that location. When choosing the location for your property, take into account any public transportation lines, the quality of the area and the parking that you have available.

 

Underletting

New tenants often make this mistake. They think that they can sell their lease to someone else. Leases often prohibit you from doing this and you will be responsible for the terms of the lease even if the new tenant happens to move in. You have to comply with the conditions of your lease at all times and you also have to make sure that you are aware of any rules regarding the sale or exchange of the lease as well. If you are able to transfer the lease then it helps to understand the process, so that you have a good get-out clause in place if you do happen to move on.

 

Breaking your Clause

Tenants often think that they have the ability to break or terminate their lease at any given moment. If you do terminate your lease then you will face a huge range of consequences and some of them can be devastating to your business. It’s important that you recognise the fact that when you have broken the lease, the landlord has the right to take action against you and this doesn’t look good for your business at all. If your landlord happens to break the lease then they will also face consequences, but before you take out the lease it’s a good idea to know what you can do if this happens. You’ll want to be protected in every way possible when you decide to rent a property, and this means being a bit more diligent in your approach to the lease and the fine print.

Expert Advice

Whenever you take out a lease on a rental property, you have to make sure that you do everything you can to get the advice you need. You also have to make sure that you are aware of the legal standing that you have with your lease and it may even be a good idea to have a lawyer look over the terms of the lease as well so you don’t get caught up in a loophole.

Issues That Could Affect Your Next Property Purchase

The last thing anyone wants is to research the property market, put plans in place, and then discover something gets in the way of their ambitions. However, that is something that happens to make homeowners and investors every single year. In the hope of shedding some light on the situation, this post will highlight some of the issues that could affect your next property purchase.

A low credit score

There is an infographic at the bottom of this page that tells you everything you need to know about credit scores and how they might affect your ability to get a mortgage from your provider. Take a look at the image to learn more.

A lack of deposit funds

There is no getting away from the fact that you have to raise some money to pay a deposit if you want to purchase a new home in most instances. If you don’t have that cash available, there are some options on the table. However, you’ll probably have to borrow it from somewhere.

Problems at the bank

Some banks refuse mortgage deals to people who have a bad track record of keeping their accounts in order. While you might not affect your credit score with late payments, those who consistently get into trouble with the bank might have to look elsewhere.

If you manage to avoid all those problems when the time comes to buy a new house or apartment; you should navigate the process without issue. Good luck with everything from here on out!


Title: What Credit Score Is Required for a Mortgage in 2018?

Business Mistakes That You Might Be Making

Running a successful business is a tricky task, and even if you’ve been doing it for years there will always be something that crops up and surprises you that you didn’t know about. So it’s understandable that sometimes you find yourself making mistakes that you’d rather not be making. One thing to always remember is that there is always an easier way of doing things, even if you’re happy with your current way. Here are some business faux pas that you might be making and how to resolve them so that your business can continue to thrive.

Listen to all opinions

It’s all too easy to think that your opinion and way of doing things is the right way and therefore the only way that something should be completed. Make sure that before performing any task that you’ve listened to all opinions openly so that you can be sure that the decision you’re making is the right one. You will find that more often than not, someone else has a valid point and this could make your life one hell of a lot easier by doing it their way. Just remember to be more open minded and you will be fine!

Explore all options when it comes to money

It’s a simple fact that in business you need to spend money to make money, and unfortunately that will always be the case. However, digging straight into profits doesn’t always have to be the option you go for when it comes to buying something that your business needs. There are finance loans available that you could apply for which would mean that your business is not out of pocket and you could pay for whatever you need back slowly and at a much more affordable rate.

Keep an eye on your staff

One mistake that many business owners make is by trusting their staff a little bit too much. While this is important to run a successful business, there should never be a complete trust because they are essentially helping control the direction that your business goes in. Be sure to keep an eye on your staff and help guide them if needed so that you can make sure your business is going in one direction only – up! Don’t forget that training is essential to ensure that staff know exactly what they are doing, so consider sending them on training courses to improve their skills.

Offer more to your customers

Finally, many businesses are simply just interested in the money that the customers bring in and tend to forget that being kind to their customers will mean that even more money will come rolling in. Offer your customers more for their money and you will soon find that they are coming back for more, and often with people that they have recommended you to!

Take on these four tips and you will see a massive change in your business!