1. Misunderstanding lease terms

One of the most common risks of signing a lease without legal advice is the possibility of misunderstanding the terms.

Commercial leases are often filled with jargon and technical clauses. Without guidance from a property lawyer, you may unknowingly agree to unfavourable terms.

For example, you could miss important details about your maintenance responsibilities, future rent increases, or restrictions on the way you can use the property. A lawyer who specialises in commercial leases will help you decipher these terms, identify any clauses that may impact your profits and make sure you understand exactly what you're signing up for.

2. Unforeseen costs

When you sign a lease without understanding the fine print, you may find yourself liable for unexpected costs. These could include repairs, maintenance fees or make-good charges that were not outlined in discussions but are included in the lease.

Some common unforeseen costs include:

• Maintenance and repair obligations that fall on you instead of the landlord.
• Insurance requirements, where you may be responsible for insuring the premises.
• Utility costs beyond basic usage fees.

These can all add up to impact your profits so be very clear on the real cost of renting your commercial premises before signing a lease.

3. Limited negotiation power

If you have never signed a lease before, you risk being at a disadvantage during lease negotiations. Landlords and their agents tend to draft leases in their favour. Without professional advice, you may miss opportunities to negotiate better terms.

Many tenants don’t realise that they can negotiate:

• Lease duration and renewal options.
• The amount and terms of deposits or bank guarantees.
• Rent-free periods or concessions, especially if the property requires improvements.

You’re about to sign a lease for several months or even years. Having a commercial leasing expert from NPR Law in your corner will improve your negotiating position, helping you lock in an agreement that makes sense for your business.

4. Lack of long term protection

As mentioned, commercial leases often contain clauses that favour the landlord. These can include restrictions on subletting, penalties for late payments or terms that limit your ability to terminate the lease early. Without legal advice, you may inadvertently waive your legal rights or protections that would have otherwise safeguarded your interests.

You need to think about what you will need in the future as well as today. A lawyer will bring this perspective to your negotiations and lease review.

5. Breaching lease terms

Failing to understand your lease agreement could lead to unintentional breaches of the contract, which can have serious consequences and even land you in court. Even minor missteps, like not maintaining certain areas of the property or misinterpreting use restrictions, could result in legal disputes or penalties.

Signing a lease: Yes, you need legal advice

The risks outlined above demonstrate how important it is to seek legal advice before signing a commercial lease. Before you sign, get in touch with a legal professional who can:

• Clarify complex terms and explain your obligations in simple, easy-to-understand language.
• Identify potential pitfalls in the lease and help you negotiate more favourable terms.
• Ensure compliance with local laws and regulations.
• Provide peace of mind so you know your interests are protected.

The right commercial lease will help lay the foundation for sustainable business success. Start on the right foot and you have an exciting future to look forward to.