Renting space for your business in Canada

What are the factors to consider when renting a space for your business? As a startup, you can minimize the space to save on cost, but first you need to learn what will be included in those costs and how to seek out legal advice before signing. Here are a few things to keep in mind when looking for space to rent out for your business.

Rent, of course, is the main cost to factor into the equation. Generally, this will take the form of a fixed rate fee determined by the square footage of the space and some maintenance costs. However, some businesses, such as those in retail, may also be required to split a portion of their sales with the landlord. FindLaw states "there is no standard agreement for commercial leases. In fact, negotiating the terms of the lease is usually expected."

Market fluctuations, location, and whether the tenant pays utilities can all factor into rental negotiations. In any case, be sure to discuss with the landlord any fees, current or future, associated with the space.

Keeping startup costs lean is likely a priority. Minimizing the space your business inhabits is a smart and essential method. Depending on the type of business you're considering, your storage and merchandise needs will vary.

For example, if you wish to provide customers with seating yet need to lower costs associated with furniture that consumes square footage, you could consider starting out in a food truck and providing portable chairs that move when you do. According to Canada Business Network, an office space calculator can be used to determine how much space is necessary for your business and therefore what type of unit would be ideal.

You'll want to consult a professional for legal advice specific to your situation before signing the lease. A myriad of factors can influence your rental cost and the terms of the lease. You might want to sublet, or the rent could increase or your landlord could even go bankrupt. According to Canada Business Ontario, "there are at least five common ways to calculate rent, including: gross leases, net leases, net-net leases, net-net-net or triple net leases, and percentage leases."

Confused yet? That's why consulting a professional for legal advice is so critical. Canadian Lawyers reminds us that while residential leases are tightly regulated, commercial leases are an agreement between landlord and tenant, are highly variable and unique to the situation. The intricacies of navigating such a malleable situation require a professional's advice.

Now that you've consulted a professional, closely examined the space in question and discussed the agreement with the landlord at length, you can prepare yourself to rent a space for your business in Canada.