Small Business Plans, Property Licences part 1
The move into the house is easier, faster and cheaper than taking over a lease or buying a freehold property for small business.
Licensed properties are often ideal for start-up small business. You can rely on fast and do not bind capital in the property and you have the flexibility to change premises easily as your small business grows or your requirements change.
This information includes:
* The main features of a license agreement.
* Why licenses for start-ups business.
* What to look for in a house.
* How will the determination of actual costs.
1st Licence or rent?
The difference between a licence and a lease agreement can become blurred. The main practical differences are:
1.1 licenses cover a relatively short period of time - up to two years.
* Leasing is usually a period of many years.
1.2 Most licences give both the landlord and the residents the right to terminate the agreement (see 5.2).
* Usually this will be done by so many weeks or months in advance. Alternatively, the party wants to terminate the agreement may be asked to give formal notice to a specific date.
* A notice period of one month is a typical example.
1.3 You have no right to renew the licence, if the landlord asks you to leave.
* Many landlords prefer to offer licenses for that reason.
* In practice, the landlord is usually not want to move out, whether you are a good tenant.
1.4 You do not need too much money in advance.
* Solicitor’s fees should be low (usually £ 200 to £ 400 plus VAT).
* You must pay some rent in advance, but usually only one month.
* You may be asked to make a deposit. Typically this will be the equivalent of one month’s rent.
1.5 The diversity of available spaces in a licensed basis is relatively low, compared with the range of premises, which can be rented.
But there are many small offices, studios and workshop units on licence in most parts of the country.
* Your local council or Enterprise Agency may register a property in the two lists licensed and rented premises.
* Some local authorities and agencies for companies offer easy-in, easy-out licenses for small businesses they own centres. These are sometimes offered at subsidized prices.
* Some private landlords with hard-to-let properties may grant licences for a time, while they are looking for tenants to take a long-term lease agreement. Some offer full-service offices in license.
2nd The Agreement
A licence is a legal agreement with the landlord. The agreement should be short, simple and in plain English, but you still need to examine all details thoroughly.
2.1 is the name of the landlord correct?
* If the landlord of the property owner?
* If the owner the right to issue licenses in this way? Even property licensing agreement with local authorities and enterprise agencies need to be reviewed.
2.2 Are your name (under licensee), the duration of the license, address and description of the premises, and the notice period correct?
* If you trade as a limited liability company, make sure that the license will be issued in the name of your company and not your personal name.
2.3 If the agreement expressly to all services you can expect free, without additional costs? For example:
* Electricity, heating and air conditioning.
* Municipal services, including the reception and all the security services and the use of toilets, kitchens and other common parts of the premises.
* Cleaning, window cleaning and garbage collection.
2.4 Is the agreement include the provision of services and other facilities that you expect?
*-Office services, such as a telephone answering machine, typing and copying.
* Basic office furniture.
* Telephone lines, including lines, you may need to access the Internet and fax machines.
* Parking.
2.5 What does the license agreement to cover?
Typical clauses will say that:
* You may use the license, sub-let all or part of the premises, or share space with others.
* You will not receive any rent or lease rights.
* You and your staff, all in accordance with the terms of the license.
* You are not allowed to alter the premises in any way - even on improvements at their own expense.
* The landlord is not liable for any of your losses.
* The landlord is responsible for the repair and maintenance of the property and the provision of municipal services.
* The landlord is responsible for the security of the premises and all furniture and lamps, with the companies. All other insurances are usually your responsibility.
3rd Real flexibility
Flexibility for the questions of a new company, since it often impossible to predict sales volumes and activity levels more than a few weeks in advance.
3.1 Going into a serviced office block can mean, you can easily expand if your business is growing fast.
* You may be able to rent additional office, storage or meeting room space for short periods or special projects.
* As the company expands, you can settle additional offices in the building one after the other, so you only ever renting accommodation, you need at this time.
* You can completely switch offices, in larger or better in the same apartment building.
part 2 read more
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