Online Test Banks
Score higher
See Online Test Banks
Learning anything is easy
Browse Online Courses
Mobile Apps
Learning on the go
Explore Mobile Apps
Dummies Store
Shop for books and more
Start Shopping

What to Watch Out for in a Business Lease

Part of the Business Contracts Kit For Dummies Cheat Sheet

If your business has a physical presence, you’ll most likely negotiate a business contract known as a lease for rental of space to house your business. Be aware that the landlord may use a form lease that contains gotchas. Gotchas are provisions that may cost you a lot of money or headaches in ways that you didn’t plan. Your best bet is to negotiate them out of the lease. Some classic gotchas to look out for include:

  • The landlord’s right to pass increased operating costs in the building on to the tenant without limitation

  • The tenant’s obligation to pay any increased taxes as a result of the landlord’s selling the building

  • The landlord’s right to terminate your lease early for his or her convenience

  • A disclaimer about the building and the services provided to tenants

  • Severe limitations or prohibitions on subletting your space (you may need to sublet space if your business shrinks)

  • Personal guarantees or payment of the rent required from the company’s owners

  • Add a Comment
  • Print
  • Share
blog comments powered by Disqus

Business Contracts Kit For Dummies Cheat Sheet


Inside Sweepstakes

Win $500. Easy.