It has happened in the past that cafe owners get so busy running a cafe that they miss important deadlines relating to their leases. Don’t let this happen to you! If you miss the deadline to renew your contract of your lease, the landlord of the property has every right to refuse to renew, leaving you without a building for your cafe!
When running a cafe, it’s important to focus on the day-to-day, but don’t get so caught up in it that you miss important deadlines such as lease renewals!
Not only is punctuality an issue, but also make sure that you fully understand the terms of your lease before signing or agreeing to anything. There are a few items that are a part of every lease agreement:
The Market Reviews
A market review can make you pay more for your lease than you had originally anticipated. Make sure not to agree to anything until you know what the market review looks like, otherwise you could end up paying a higher rate for rent based on this information. It’s important to note that market reviews almost always go up in price, and rarely ever down.
You can negotiate the lease for your cafe up front or wait until you have all the information on the market review before agreeing to sign a lease.
There are a few common clauses that are included in yearly reviews, which is a measure by which the landlord determines the value of the property.
Your yearly review can include things like CPI annual increases, a fixed yearly increase (usually between about three and five percent), or a four to five percent rental increase. This last clause is not a good sign, as over the years your rent will keep increasing until you are paying way too much!
Your lease will also include options to review. This will help you to figure out if your space is still worth renting.
If you can, you should sign a lease for the longest amount of time possible, so that you will be sure to have the rights to occupy the same building for…