If you are just starting out as a small business
owner, then chances are good that you will need to enter into a lease
agreement, and probably on more than one occasion. Perhaps you will have
to rent space for your business, or maybe you'll need to sign an equipment
lease agreement. Before you go ahead and sign the papers, read on to learn
more about lease agreements and what you should know about them.
What is a lease agreement?
A lease agreement is a legally binding document between two
parties. The most common form of lease agreement can be found between
a landlord and a tenant with a rental lease agreement. However, lease
agreements can take many other forms, especially for small business owners.
You might lease a building for your business, or you might lease equipment
required to run or start your company. Whatever the reason for entering
into a lease agreement, you need to know a few things about lease agreements
to ensure that you are getting exactly what you want and need.
Read your lease agreement carefully
There are many important parts of any lease agreement, and, depending
on what kind of lease agreement you're signing, there are certain things
you should look for before handing over your autograph. First, make sure
that you have read all of the terms of the lease agreement. Otherwise,
you may do something to allow the landlord to break the lease. For example,
a commercial rental lease may have a provision in it that states that
you if you want to renew the lease, you must provide one year's notice
to the landlord. If you haven't read the terms of the agreement, you won't
be aware of this and may miss the deadline to renew the lease, something
that can adversely affect your business.
Benefits of leasing
Are you starting a small business and need to locate space for your company?
Leasing space is a great idea because of all of the benefits that come
with signing that lease agreement. For example, if you are just starting
out, you may not know what size of space you require. Signing a short-term
lease agreement is a good way to get started without tying yourself into
the space for good. Instead, if your business is growing at a rate that
requires a larger space, then after your short-term lease expires, you
can simply walk away from that space and find a more suitable one.
Other benefits of a lease agreement include being able to sign up without having lots of capital your endeavor. Let's face it - new business owners do not have a lot of money sitting around waiting to become collateral. With a lease agreement, you won't need to put a lot of money down, as you would have to do in a sale agreement. This allows you some financial freedom, rather than having all of your money tied up as collateral for a loan.
There you have it - some simple, yet effective advice on signing a lease agreement. The benefits of lease agreements are vast, so make sure you can reap the rewards of a lease agreement by signing one that is best suited to your needs.
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