When it comes to the restaurant business, the space that you are renting or leasing plays a very important role. We are not talking about the location. There are a lot of things that come into play in when you are renting or leasing a space for restaurants.
It is not something where you jump into conclusions or take impulsive decisions. A lot of research must be done, and many parameters must be taken into consideration. In this article, we will see in detail the things to consider while taking restaurant buildings for lease.
Even if we have said it, it would have been the first thing that would have hit your mind. We all know for a fact that the lease amount is one of the biggest initial investments that we have to make in a restaurant business. The one thing that you need to keep in mind is the higher limit. Have a higher limit and stick on to. While negotiating if they are not able to settle down with the amount that you are comfortable with do not proceed further.
When it comes to a restaurant, there are certain mandatory things that need to available in that space. For example, if you do not have proper water facilities, then that particular space is not fit for a restaurant business no matter how cheap it is. So the facilities of the place play a very important role. Some of the mandatory facilities that need to be present in a restaurant space are water, the area that you are going to occupy, fire safety exit and properly planned construction according to the government norms.
Ask the nearby tenants
One of the things that you must do it to ask the tenants you are located nearby. It will be great if you can get in touch with some of the clients in the same building. By doing this, you will be able to zero down to the approximate amount that they will be charging for space. It is more like someone giving a heads-up so that you will be prepared for what is about to come.
The lease period
When it comes to the lease period, it differs from property to property. Some will be ok with even leasing it for one year. Generally, the minimum lease period will be a minimum of five years. You should know that letting the space for lease for a short period of time will not generate big profits. From their business perspective, they will state the period that will be more comfortable for them.
Getting out and renewal procedures
There are certain procedures that you need to follow when you are getting out of the lease or extending the lease period. Make it a point to be clear about these two important things. If you are not then you might to have to go through some bitter conversations with the owner.