Contracts can make or break your business success. Here are 7 mistakes to avoid when signing your next lease agreement.
In This Article
Missing Contract Review Periods
Many businesses rush into signing without taking the standard 5-7 day review period. Have your lawyer examine every clause, especially the fine print about maintenance costs and rent increases.
Vague Contract Terms
A solid contract leaves no room for interpretation. Your agreement needs to address:
- Exact square footage
- Permitted property uses
- Operating hours
- Parking rights
Without these specifics, you risk costly disputes with your landlord later.
Overlooking Break Clauses in Contracts
Add flexibility to your lease with clear exit options. Your contract should spell out notice periods and early termination fees. Many tenants skip this part, only to find themselves trapped in unsuitable premises later.
Contract Renewal Terms Left Unclear
Don’t assume automatic renewal rights. Your contract must define:
- Renewal notification deadlines
- Rent review procedures
- New term conditions
Missing these details can leave you scrambling when your lease ends.
Maintenance Contract Obligations
Know exactly who pays for what. Poor maintenance terms lead to unexpected costs. Your contract should detail:
- Building repairs
- HVAC systems
- Common areas
- Structural issues
Insurance Requirements in Contracts
Many tenants face problems because they missed insurance requirements. Your lease should outline all coverage needs and submission deadlines. Check that your policy matches the contract demands exactly.
Contract Payment Terms
Get clear about all costs upfront. Watch for hidden fees and charges that can impact your bottom line. Your contract should specify:
- Base rent amounts
- Common area charges
- Annual increases
- Late payment penalties
Keep copies of all signed contracts and related documents in a secure location. Building a solid paper trail helps protect your business interests throughout the lease term.
Your Next Step
Contact us today at 0121 268 3208 or via email at info@onyxsolicitors.com for a FREE consultation. Let us help you achieve the peace of mind that comes with having expert legal support on your side.
