What should I do before I sign a new business lease
A lease is one of the more significant documents that any business owner will sign. A good time to have your corporate counsel review the proposed lease is early in the process and before you move in. This usually occurs when you are taking an inventory of physical property. That is the time you are thinking about how to transport your business assets to a new location.
As the owner of the business you have a legal and fiduciary duty to act in and for the best interest of the business. Signing a lease without consulting with your business lawyer may expose you to liability. That aside it is just smart business to avoid problems by confirming or negotiating terms before signing.
As the owner of the business you have a legal and fiduciary duty to act in and for the best interest of the business. Signing a lease without consulting with your business lawyer may expose you to liability. That aside it is just smart business to avoid problems by confirming or negotiating terms before signing.
What terms are important in a business lease
Not all commercial leases are created equal. I have seen leases created by shopping center owners that are large nation-wide companies that use the same lease in all fifty states. But Florida law is different than some of those so what is accepted in one state may be illegal here. One example is self-help, which may be allowed in another state, but is not allowed in Florida.
One of the biggest issues in Florida is air conditioning or HVAC. A business without air conditioning can quickly find itself out of business. The lease must define who is responsible for the HVAC system at your business location and who must maintain it.
A client of mine was looking at new commercial space. The lease stated the HVAC was the responsibility of the tenant. I recommended that my client have the system professionally examined. That inspection revealed that the compressor was almost twenty years old and had not been maintained. The inspector opined that it probably had less than a year's life left on it.
A new business usually cannot afford a $14,000 bill to replace the HVAC in its first year. Through our negotiations, the landlord agreed to replace the compressor and take on the responsibility of maintaining it. My client was able to move in without worry and with a new HVAC compressor. The small costs of an expert business lawyer’s counsel avoided a larger and more expensive problem later.
One of the biggest issues in Florida is air conditioning or HVAC. A business without air conditioning can quickly find itself out of business. The lease must define who is responsible for the HVAC system at your business location and who must maintain it.
A client of mine was looking at new commercial space. The lease stated the HVAC was the responsibility of the tenant. I recommended that my client have the system professionally examined. That inspection revealed that the compressor was almost twenty years old and had not been maintained. The inspector opined that it probably had less than a year's life left on it.
A new business usually cannot afford a $14,000 bill to replace the HVAC in its first year. Through our negotiations, the landlord agreed to replace the compressor and take on the responsibility of maintaining it. My client was able to move in without worry and with a new HVAC compressor. The small costs of an expert business lawyer’s counsel avoided a larger and more expensive problem later.
Conclusions on moving your business
In sum, the best time to consult with your business attorney is before you execute a new lease. Each situation is unique, but a skilled business lawyer looks through a lens that identifies issues that the business owner may not have considered. The small expense of a consultation to the business will be worth the peace of mind and protection later.
Written by expert business lawyer David Steinfeld
David Steinfeld is one of the few Board Certified business law experts in Florida. He has been licensed for over 25 years. He is AV-Preeminent rated, ranked as one of the Best Lawyers in America by U.S. News and World Report, and consistently named a Florida Super Lawyer and one of Florida’s Legal Elite. Dave has also received Martindale’s prestigious Judicial Edition Award for high reviews by Judges, its Platinum Client Champion Award and has a 10.0-Superb rating on AVVO as well as a 10.0 rating on Justia, lawyer reviews websites.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
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