What Precautions Should Be Taken While Renting a Space for a Shop

Renting a commercial property is common in India’s urban areas and plays a significant role in the success of a business. No matter if you are offering space on rent for the first time or expanding your existing business, it is always important to evaluate certain factors before entering into a rent agreement. However, the real estate sector in India is facing huge competition, and commercial rent agreements have been carefully negotiated. The business should be aware of the applicable questions and laws. Understanding the regulations will enable you to avoid expensive mistakes and save money. 

So, before making any hasty decisions, several key factors need to be kept in mind to save you from further complications. 

Factors to Consider While Giving Space on Rent for Shop

Renting commercial space on rent needs a thorough evaluation of tactical and strategic factors. Here are some precautions that need to be followed before signing the rental agreement. 

1. Understand the Business Requirements

Obtaining a complete understanding of the business needs is a leading element before entering into a rent agreement. It is important to ask certain questions, such as if the company needs parking space, wheelchair accessibility, a commercial license, or any other structural needs. Usually, small business entrepreneurs and startups avail themselves of small space on rent that will save capital for further expansion. However, it enables them to rent bigger space later on according to their needs and expansion. 

Thus, keeping in mind the requirements enables the business to flourish in the competitive market and achieve success in a short period. 

Written Agreement

A perfect written rent agreement is known to extinguish any ambiguity between the tenant and landlord. Having a proper agreement for commercial property for rent in Dehradun will not only allow you to conduct business operations peacefully but also help you fend off any future legal fuss. Before signing a legal rent agreement, certain things need to be kept in mind, like the name of parties, tenure, lock-in period, increment conditions, warranties, possession, and important things. 

3. Location and Accessibility

The business’s success depends heavily on the location of the commercial property. Hence, it is vital to choose a place that is easily accessible to the target audience, suppliers, and employees. Also, proximity to public transportation and parking facilities will enable customers to engage and make commuting accessible for the employees. 

Furthermore, the competition surrounding the area and complementary businesses within the locality should be considered. Being close to similar companies will create a strong synergy that engages customers quickly. However, it is crucial to ensure that the market is balanced; if there is intense competition, then it creates a hindrance to business growth.

4. Validate the Title Ownership

If you are not purchasing the property but rent it, then it is important to have all the vital details of property ownership. Therefore, you should ensure that you have repaid the title deed to support the rent you are charging. In addition, you may need to check whether the property does not possess a sub-rent or any other form of rent affiliated with it. It has to be done before signing the rent agreement as it will surely cause some trouble later.

5. Rent Agreement Validity

It is often advisable to have a lawyer present to navigate what is often a complex process at this stage. However, in general terms, any commercial rent agreement should incorporate features that include the following, among other provisions that form the whole rent agreement.

• The extent of the contract is effective or starting from a certain date to being legally terminated or cancelled.
• Property’s correct address
• Rental amount
• Lock-in period
• The details of all the deposits made by the respondent have been included.
• Payment interval
• Rent renewal provisions
• Incremental clauses
• The names of each party and the signatures Documentary as evidence
• Documentation of the rental agreement (if the rent is negotiable for more than one year).
• Names of the landlord and the tenant or other individuals involved in the rental agreement and full signatures of such individuals.

6. Examine the Building

Before you seal the deal for your property, try to look for infrastructural facilities, sufficient parking, necessary local facilities, enough space, lighting, and ventilation. You should also seek information on typical office equipment and other hardware and software technologies, the safety of your team and other data, the existence of installed security measures, and so on. Furthermore, one should take a lot of caution when acquiring any form of commercial property as it is necessary to conduct a background check of the property before entering into the agreement formalities. 

Discover Your Perfect Space for Rent with Wfecity

Now, seeking a property on rent that fulfils all your needs is a challenging task. To avail of the perfect commercial property for rent in Dehradun, the entrepreneur needs to plan and establish a practical plan that makes things easier. Wfecity is committed to helping the business to find an ideal commercial space for rent. We will discuss the client’s unique needs and bring the best commercial space that elevates the company and brings it to new heights of success.