9 tips for renting a space for your small business
Category General News
Whether you're an aspiring entrepreneur or established business owner, setting up shop in a new location is an exciting milestone. Renting a small business space, as you know, isn't just about the square footage. But, it's choosing one where ideas and sales flourish, employees work effectively, and your customers or clients feel welcomed. As a significant decision, there's a certain level of planning and insight required. Not to worry, though! Here are tips to ensure your new premises becomes a launchpad for success.
1. Understand your needs: Before you get on the search, make a checklist of everything you want in your new space. Ordered from the most important to least, this can include size requirements, layout, accessibility, location and amenity features, security, staff offices, storage and facilities, and room for future growth. The clearer you are, the less time you'll spend looking at properties that appear flashy but don't cover the basics.
2. Create your budget: What can you realistically afford? Keeping rental costs, utilities, maintenance, moving expenses, and potential increases in mind will give you a realistic idea of what your ideal space looks like. With your budget set, you also won't be tempted to sign a lease for a rental outside your price range. And for that, knowing the market trends for rentals in your area/s of choice will also make a difference.
3. Choose the right location: Your area can make or break your business, so do your research. Consider your proximity to suppliers and your client base, foot traffic, complementary businesses in the vicinity, the area's safety and reputation, parking requirements, accessibility for employees, and amenities that meet staff needs. The location should tick the boxes that your business needs to thrive.
4. Have a look at the infrastructure: Depending on your small business, check the availability and quality of utilities like internet connectivity, electricity, and water supply. As a South African business, you will also benefit from backup systems for water shortage and loadshedding. Many business complexes, for example, provide backup generators, solar power systems, or rainwater harvesting to help businesses stay open and operational.
5. Inspect the property: Once you've shortlisted properties, take time to tour each with the listing practitioner. Keep your eyes open for the condition, safety, and all the features and amenities advertised. Be sure to ask the practitioner about the property's history and details on the previous tenant to help you make an assured decision.
6. Research your landlord: Just as landlords vet potential tenants, make sure you check the reputation of your prospective landlord. A difficult or indifferent landlord can make running a business challenging if you need them to uphold their responsibilities. In the case of a managing agent, verify if they have a good reputation for attending to tenant needs. Do have a chat with current or past tenants if possible.
7. Understand the lease: Landed on a property you love? Fantastic! Before you sign the dotted line, be sure to read the lease agreement carefully. This is a legally binding document and you don't want to rush through and miss terms that you can't adhere to. Consider having a lawyer also review the document so you get a clear picture of the duration, costs, responsibilities, and any restrictions.
8. Negotiate the terms: The lease agreement isn't set in stone and you can discuss the length of the lease, rental costs, termination clauses, and any improvements or modifications you might need. You can even offer favourable terms the landlord might appreciate; for example, extending the length of your lease in exchange for a better rental price.
9. Plan for the future: Businesses grow and plans change. Evaluate your lease to ensure that if you should end it, you can deal with the punishments. Reviewing the opt-out clause is important as it could mean you incur penalty fees. Beyond the lease, you also want to make sure the space can adapt to your needs, whether it be having space or the ability to add a new workspace, kitchen, restroom, conference room, etc. depending on your business type.
Find a small business property to rent
Your business may be small, but your aspirations are larger than life. You need a real estate agency that understands the market, has experience with finding properties, and can help you navigate lease agreements effortlessly. Kellaprince Properties are here to help. View our commercial properties to let or retail properties to let and make contact with our team today. We look forward to finding your ideal space, leaving you to do what you do best.
Author: Kellaprince Properties