Your Laundrys Lease Is It''s Greatest Asset The Longer The Term The Better It Can Be

There are a few fortunate laundry operators who own their own laundry property. The rest of us have to rent our laundry locations from others. It is for the -edification of the many having to rent that this article is directed. The first thing to understand is that rental agreements or leases are real legal documents that carry the full weight of the law behind them. They are legal contracts giving space for a specified period of time. Leases call for specific performance that both sides pledge to do during that period of time. Failure to perform as agreed, by either party, could end up being a case in a court of law. So, when it comes to signing a commercial lease, either new or for renewal, you must recognize that your name is on the line and missteps could cost you everything you own and then some. It''s vital that you are very careful in reading and understanding the lease. Never be so in love with a potential business site that you just simply sign and accept the lease terms without a thorough reading of all of the clauses and terms of the lease. Having a bad lease is worse than not signing. Preprinted lease documents are mostly one sided and the side protected is the landlord''s. These are called unilateral agreements, meaning one sided. The landlord''s lease is designed to protect them, not you. Leases, like most other contracts, are legal documents written up by lawyers for the protection of the property. It''s in their best interests to make them difficult to read and hard to understand. That may require that you too hire a lawyer to help navigate the lease you have been asked to sign. The first step in reviewing any lease is to spend as much time as it takes to read and understand the terms and conditions of the lease. Take a few days and read the proposed lease bit by bit. Mark down and highlight any part of the document that you are not certain you know what it means, especially if you don''t know what implications something may have later on. Take a look into the future. Imagine what could happen and then try to understand the lease based on how it would affect you under that circumstance. Now it''s time to spend a little money having an attorney go over all the terms and conditions you don''t understand with you. You need to have your attorney explain what each clause really means. Spending a few hundred at the beginning is far better for you than spending thousands later on for attorney fees in any future dispute over the lease and its terms. Lease negotiations are, well? they are really negotiations, and they expect leases to be discussed on a give and take basis. Don''t feel rushed to sign a lease. Some agents representing the property will try to speed you up because agents are usually paid on commission and don''t get their money until the deal is signed. It''s one reason they are always in a hurry to close the deal. Someone else is suddenly really interested in that space if you don''t sign the lease today. Things you should ask to have changed. There are a lot of clauses in preprinted lease documents that the property owners actually don''t need, and really don''t want. The usual lease form is made to cover all situations, not always the ones you are in. Just because there is a printed clause that says you must pay rent, even if the building is burned down, you can tell them you want it removed, and they will probably remove that clause, because it is one of their give away inserts. It''s one of the things they are willing to delete, simply because they really don''t care about that clause. One clause normally found in commercial leases is one specifically designed for retail stores. Under the terms of that lease, they pay a percentage of sales as part of their rent. They are required to report to the landlord on their sales volume. Since that doesn''t apply to a laundry business, that is one where removal is almost always allowed. Most shopping centers have one or more anchor tenants. These are the big names that bring in the majority of customer traffic to the center. Usually it''s a grocery or drug store. Anchors bring business for the lesser tenants, such as a coin or card-op laundry. When chains merge or combine, there is a risk that the store in your center will be closed. When that takes place it adversely affects all other businesses in the shopping center. For that reason, it is not unreasonable to request a clause that will reduce your rent in the event the anchor tenant leaves. Usually you won''t get a fight, because the property owners believe it won''t ever happen and that change won''t cost him anything. If and when anchors leave, the rent will still be paid for the term of their lease, but the volume of business for the other tenants, including your''s, will probably fall dramatically. Try to control your laundry''s space for as long a period of time as possible. The standard lease form, usually on page one, includes the length of time you are allowed to occupy the premises during the first period of the lease. Options to extend the lease beyond the initial period are usually found toward the end of the lease document. Options to renew a lease are generally thought of as a benefit to the lessee, not for the lessor. Why? Because the option to stay or go is now with the renting party. In other words the laundry owner decides whether or not to renew the lease. It''s his option. Anxious landlords are much more likely to give option requests when the lease is first offered, so ask for as many options as you think you can. When there''s a year or two left on the lease, the laundry really has no value, except to the landlord. That is why you should be anxious when there are ten years or less left on your lease. Begin asking for more time. If you have been a good tenant, who has always paid rent on time, then you should really have no problem asking for an option of 5 or 10 more years so that you''ll keep on being their good tenant. You don''t have to sign that lease. If you are uncomfortable with any terms or conditions, and you can''t get the lessor to make the changes you ask, don''t be afraid to walk away from the deal. In negotiations, it''s good to walk away sometimes. That can be one of the best negotiating tactics to employ. Often the one offering the lease will change their minds in order to protect the time and energy they have invested in signing you up. They''ll agree to your changes so long as they are reasonable. There''s more to a typical lease than just monthly rent and term of occupancy. Details are often obscured and hidden away in the printed jungles of excessive small print verbiage. Who is responsible for the building honoring the rules of the Americans with Disabilities Act? It should be the property owners as far as required ramps and signs are concerned. But, does the small print say that? You already know that you''re the one responsible for the inside of the space. Who is required to do signs advertising for the laundry, and what must these signs look like? With some leases, you buy the signs through the landlord and pay them a monthly fee as signage rent. What amount of parking spaces is called for in the lease, and who takes care of the parking area? Is there a way you can prevent other tenants from parking in front of your laundry business? Will your laundry be the only one allowed in that center, or can they lease other space to your competitors? Does the sale of vending items, soft drinks and candy violate your lease? Can you offer drop off dry cleaning and do fluff & fold in your space? If there is a dry cleaner in the center, can they offer laundry services in competition with you? Your premises lease is so important to any future success for your business, and it is vital in so many ways you don''t normally think about. There can be hidden clauses and terms in your lease you may not see or ever notice until the landlord''s attorney or agent calls them to your attention. You probably won''t see them by scanning the papers for the first time. When negotiating leases, count on advisors such as your attorney. If you don''t understand, don''t sign. If the changes you ask for are refused, then walk away from the deal. You''ll be happier and likely better off too. Read your lease carefully, take your time to digest the contents and sign only after you are certain of what everything means.