If you’re leasing a space for your business property, it’s quite important to know exactly what is stipulated in that lease. This could have a major impact on how your business operates and how you budget for the space.
One thing to consider is if it is a triple-net lease. What does this mean and how will it impact your company moving forward?
Payment obligations
A triple-net lease is one that defines what the business owner is required to pay for. The base of the lease, of course, is just a monthly rent payment. But it can go far beyond that.
For example, if it’s a single-net lease, your company would also have to handle the property taxes, on top of those rent payments. With a double-net lease, you’ll also have to pay for your own property insurance in case there’s an issue with the space – a fire, a broken pipe, a car accident, etc.
With a triple-net lease, you have to pay everything noted above, along with insurance on the building, yearly real estate taxes, payments for utilities and the cost of building maintenance and upkeep. In many ways, a triple-net lease means that you are responsible for the building as if it were your own, even though you are technically renting and you do not have ownership.
But this can be beneficial because it allows you to use the space in the way that you wish for your company. You get the freedom, but you also have extra obligations and responsibilities.
Establishing your business
When you’re launching a new business, finding the right space can be difficult. It’s quite important to know exactly what legal steps to take at this time.
