I was recently asked about my opinion regarding items for consideration when leasing a physical space in Summerville, SC. Regardless of where you desire to lease, there are several general agreement terms/conditions and language to consider. Among them, in no particular order, include:
- Payment: Amount, Frequency, Method, Deposit Amount, Payment Structure (this may be relevant for Financial & Tax Reporting)
- Provisions for Privacy/Non-Disclosure depending on the secrecy and information requirements of the business.
- Timing: Lease Start, Lease End, Renewal Notice, Cancellation Notice
- Ownership: Legal Ownership of the property, Provisions for transfer of ownership and the effect on the lease
- All Parties with interest to the transaction.
- Penalties: Penalties or interest assessed for Non Payment or Early Payment
- Expectations and Responsibilities: Responsibility for repairs & maintenance, landscaping, upkeep, upfit, and/or restoration at end of lease, responsibilities for tax & insurance, security
- Any exclusivity options for purchase, renewal or right of first refusal on additional leased properties.
- Future renewal requirements such as additional credit reports, financial information and background checks.
- Provisions/condition requirements for return of deposit at termination of lease
- Delinquencies and back payments due on the property (to help ensure the property does not experience foreclosure while you are under contract)
- Fit for purpose language to indicate intended purpose and acceptability of the use of the property.
This list of items is certainly not all inclusive. Key points will vary based on several things including location, type of business, intended use, the local market, condition of the space, and financing. Additional items should be considered when evaluating a lease for property depending on your specific circumstances. As with any business, the lease should be considered by both the CPA and the Attorney of the business owners.
If you are considering a lease and would like a CPA in or near Summerville, SC please contact Swamp Fox CPA, LLC at 843.900.6635 or firstname.lastname@example.org.