Commercial Lease Contract: Is It Possible To Negotiate The Clauses?

Commercial Lease Contract: Is It Possible To Negotiate The Clauses?

People wishing to carry on a commercial activity often opt for the rental of premises. However, they will have to face certain difficulties. For the majority of merchants, the signing of a commercial lease is often a problem.

Points to consider before signing a commercial lease

The commercial lease sets out the conditions governing the relationship between the tenant and the owner of the premises. Therefore, before negotiating the contract, it is essential to know the importance of this document.

Form

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The commercial lease is a written document drafted by a notary or a lawyer like any contract. Since the points covered in the contract are very important, drafting it yourself or having it drafted by the lessor risks creating a dispute.

Also, when signing the contract, it would be wise to have a lawyer accompany you. Moreover, for your own interest (in the negotiation), it is essential to call upon his services.

The different types of commercial leases

The lease is drafted according to the activities that the professional wishes to carry out. There are :

  • The professional lease for liberal professions
  • The commercial lease was adapted for merchants or artisans.
  • The mixed lease if the premises are also used as a home, in addition to its function as professional or commercial premises

The importance of understanding the clauses of a commercial lease

To negotiate a commercial lease, it is essential to know and understand the essential points of the contract. Indeed, not all clauses are negotiable.

The purpose of the contract

The purpose of the contract specifies the nature of the premises (surface area, location, address, etc.). Obviously, it is impossible to negotiate these characteristics, except if the information is too little developed. In this case, if you consider it insufficient, you can ask for more clarity.

The date on which the lease takes effect

In general, a commercial lease has a duration of 9 years, which makes it a long-term investment. The effective date depends on the two parties involved.

This date is negotiable. In general, you can ask for a different start date than the one proposed by the lessor. However, remain logical and rational; otherwise, you will lose the premises to other clients.

The duration of the lease contract

The 9-year duration of the contract concerns only the lessor. In fact, the tenant’s contract is for a period of three years, with the possibility of breaking the contract each time, subject to 6 months’ notice.

However, the professional tenant can extend the duration of the contract after three years.

The rent

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This is certainly the most interesting point in the negotiation of a commercial lease. Also, many points are negotiable here. Thus, you can negotiate the rent from the beginning by informing yourself well about the market, the type of premises, and its characteristics.

The economic rent

You can also negotiate the economic rent at the end of a succession of negotiations on the evolving rent and the rent exemption.

Payment of the rent

The payment of the rent is also an exciting clause to negotiate. However, it is not easy because landlords make sure they are paid on time. Not paying at the signing of the contract is often the alternative that benefits all parties.

Rent review

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The revision of the rent is not only the responsibility of the landlord, even if it is ultimately his right. Indeed, the indices are published every 3 years by the INSEE. Thus, this clause is not negotiable.

The key to negotiation is to never accept the first offer, and this is where most people fail. You need to impose yourself and make yourself look more substantial than you actually are. Sound off in the comments section below and tell us what you want to see and read next.

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