Selecting the right location, building and being able to lease the building in favorable terms is a difficult task, one that any business owner will spend a lot of time and energy in making sure nothing goes wrong. Lessees often prefer long-term leases for commercial use as it will help establish their business and once the business is established they prefer not to move to another address.
Establishing a business lease in Indiana, being a lengthy process requires the guidance of an experienced attorney to help the tenant understand the terms better as well as to be able to negotiate a better deal with the lessor.
Things to Consider While Establishing a Business Lease in Indiana:
The type of lease, if it is a gross, percentage, graduated or a net lease
The duration of the lease and the renewal option available
The rent charged should be fair market value and not over priced.
The security deposit and the conditions in which it may be forfeited.
The rate at which the rent will be increased and the rent on renewal of the lease should be decided.
The condition of the building inspected by both parties, documented and signed.
The insurance coverage provided by the lessor. It is better that both lessee and lessor have general liability insurance.
The property tax has to be paid by both for their personal property in the premises.
The tenant has to pay for the utilities as well as for any damage or repair caused by him.
The tenant has to get permission from the landlord before doing any alteration to the building as well as follow any building rules regarding parking and common area usage too.
The lessor has the right to enter the building for inspections or to carry out repairs as desired by him.
If the tenant fails to pay the rent, he is given 10 days notice before a notice of default is served to him.
The period of notice given for terminating the lease by either party has to comply with the State laws.
They have to discuss what will happen to the security deposit in case the lessor sells the land to a third party but the lease remains in tact no matter if the property is sold.
The lessor has the right to double the rent incase the lessee hold over the premise without permission.
The lessee has to make sure he can sublease the premise incase of a merger with another company or he is bought by another company.
These are a few factors to be considered while establishing a business lease in Indiana.
There are firms that offer their services as well as products to help people run a successful business.