Establishing a business lease in Georgia demands you take adequate precautions and negotiates until he/she gets the best possible lease terms. A business lease has to be signed after carefully considering if the location, space, the building etc. are well suited for your business needs.
Essential Features of a Commercial Lease: Commercial leases can be either gross lease or net lease or percentage lease or a graduated lease. A short-term lease may be well suited for small businesses that are not location sensitive; long-term leases are ideal for businesses that are location sensitive. It will be better to opt for a renewable lease. Try to get a cap on the annual rate of increase of the rent. It will be better if there is a clause permitting you to sublease or assign your premise. The landlord usually has fire and extended coverage insurance as he deems fit for the property, the tenant is responsible to get adequate insurance for his personal property.
Before establishing a business lease in Georgia, consider several aspects of the lease such as the term, if the rent charged is reasonable and that the rent is not over-priced. Usually 2 months rent is given as a security deposit to the landlord. This is given in case the tenant vacates without paying the rent. The landlord has to return the security deposit within 30 days after the termination of the lease if the tenant vacates giving notice and the property has no major damages.
Georgian law establishes an inspection procedure that ensures that tenant and landlord sign an agreement regarding the condition of the building while being handed over to the tenant, for landlords who own more than 10 rental units, but others may practice this method too. The landlord will inspect the property within 3 days of the termination of the lease and prepare a list of damages or repair and present it to the tenant. The landlord may withhold, depending on the extent of the damages, all or part of the security deposit. Georgian law requires that the landlord gives 60 days notice before terminating a lease and tenant has to give 30 days notice for the same.
It is necessary for the tenant to consider several factors before establishing a business lease in Georgia, such as the type of commercial lease, a gross lease is the best suited for a tenant, the area and the location of the premise, if there is adequate space to expand the business if need be, if the rent is reasonable. Try and negotiate to get benefits such as alterations done by the landlord at no extra costs, make sure where you stand should the landlord sell the property and what will happen to your security deposit etc.
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Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
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