Small Business Plans, Property Licences Part 2
3.2 You may have flexible access to office services and equipment on a pay-as-you-go basis.
* Many landlords with offices in the license word processing and telephone service as optional extras for their tenants. Paying agent for this when you need it, a short-term better choice than the acquisition of more employees.
* Even if only for the first few months in a position to delay or avoid purchase of equipment such as photocopiers and fax machines may be helpful.
4th Check before you sign
Certain problems occur relatively frequently in rented premises licences.
If you discuss the possible difficulties ahead, you can agree workable practical arrangements before the signing of the license.
4.1 Restricted access can create operational problems for you and safety problems for the landlord.
* Will you have full access to the building in the evening, at night and on weekends?
4.2 Will you be able to work within the restrictions that are on the ground?
* Is your company likely to generate streams of visitors and produce sounds, smells, waste or other harassment, the impact on your neighbors?
* Is the license, you can put up outdoor signs, if you wish, or minor changes to the property?
4.3, the other occupants suitable neighbours for your small business?
* If their activities are creating a nuisance for you?
* Might new, unsuitable neighbours move in a future time?
5th Potential flash points
Their contractual and working relationship with the landlord are especially important in offices licensed.
5.1 When you to pay a deposit, both parties should be clear about how it is treated.
* When will your money refunded?
* What deductions is the landlord is entitled to?
* If you are entitled to receive interest on the deposit?
* If the deposit is separate from the landlord business? What happens if the landlord goes bankrupt?
5.2 Fixed-term contracts without get-out may mean you lose a large part of flexibility in connection with the rental license.
* Avoid licence with a solid long term, which does not give you an explicit and unconditional right to cancel the agreement.
* A few unscrupulous landlords have even stunt the termination clauses in the agreements they offer. These appear harmless, but have the effect of your break clause is not enforceable - they do this by, which you need in full all the conditions of the licence, to the letter, to exercise the break.
5.3 A bad landlord, or a well-intentioned, does not keep his promise, can lead to all types of recurring headaches.
Try to determine whether the landlord is someone you can work.
* Ask other licensees the landlord about the performance in the past and the level of services provided. If other tenants complain that the receptionist is not there or the copier is always broken, take this as a warning.
* Look at the condition of the building and form your own opinion about how well they maintained.
6th Costs
When comparing the premises, using the total cost (not just the rent) per square foot as a benchmark.
Extra costs, and especially service, can be high.
6.1 What is the monthly licence fee or rent?
* Are there fixed, or does the landlord have the right to increase it? Some agreements give the owner the right to increase the rent, with one month’s notice, after a fixed length of time. Most landlords are unlikely to increase your rent, because the license is only for a short period of time.
* The rent should normally be the uniform business rate, and most services - for example, heating and reception costs (see 2.3).
6.2 Find out if the value added tax is calculated on the rent.
This depends largely on the building and the landlord’s financial and business conditions.
* If the rent does not include VAT now, the landlord can decide (or forced), to charge VAT at a later date, even if the licence is not to say you have to value added tax. Your rent will increase (but if you are registered for VAT, you can claim the VAT back).
6.3 If the cost of equipment and services that are not included in the licence fee?
* How will these charges be calculated? For example, the landlord has a mark-up, to take a profit on phone calls, or do you want to pay the standard fare? Is there a minimum amount for each service, even if you do not use it (such as copiers)?
* How are the fees for pension benefits measured?
