Finding the right space for your company to do business can be a difficult task. Especially if you’re not ready to commit to a long-term contract. Bigger companies have been leasing out a large majority of warehouses, so your options may seem limited. However, there is still room for your business if you know where to look and what lease agreements are available.
What Kind of Lease Is Right for Me?
Depending on how much money you’re willing to spend, how confident you are in your business’ needs, and your level of commitment, there are two different options for leasing that you can choose from with some variation.
Traditional Long-Term Lease
A long-term lease is a lease agreement that lasts a minimum of 6 months, but typically lasts at least a year or sometimes up to 15 months depending on who owns the property. With a long-term lease the tenant is forced to commit to leasing the property for the previously mentioned time period. That can be good for certain businesses considering you won’t need to worry about any increase in rent because of the long-term agreement you made to pay a fixed price. However, for other businesses it can trap them in a contract that may no longer suit their needs.
Unlike a flexible lease, a long-term lease forces you to lease out a property for at least a year. This can be bad for multiple reasons. For instance, let’s say your business is rapidly growing and the workspace that you lease is no longer big enough to fit your needs. Well, you’re either stuck leasing it out until your agreement is finished or forced to break your contract. Breaking your contract can have multiple consequences. For one, you’ll lose the security deposit that you paid when you started the lease. Secondly it can negatively impact your credit score and consequently hurt your chances of finding a new location to lease.
As the name implies, a flexible lease gives the tenant much more flexibility with how long their lease lasts. With a traditional long-term lease you’re locked into a one year contract with no easy way out, whereas with a flexible lease you have the ability to rent the property on a month-to-month basis instead of being tied to your contract. It’s a safer option for tenants that have a small business or just want the ability to find a new location to lease without having to break any contracts. If you’re concerned about not being able to afford a lease, flexible leasing is a good way to go.
The Benefits of Flexible Leasing
Having a flexible lease has a few different perks that you can’t get with a long-term lease. Leasing month-to-month gives you the option to stop leasing without having to worry about breaking any agreements or losing your security deposit. Companies grow, and with a flexible lease you have the option to lease another property when the time is right and you need more space. Instead of paying for a property that you can’t fully benefit from anymore and being tied to it until your contract ends, you can just pack up and move. You also don’t have to worry as much about not being able to afford your lease because of the short lease periods. Flexible leasing is all around a much more stress-free way of leasing a property.
If you’re interested in learning more about leasing or even looking for a place to lease for yourself or your business then Schwarz Properties can take care of you. Visit our website or contact us at (336) 777-7308 for more information.