What kind of documents will I need in order to sign a lease?
The documents required by landlords will vary depending on many factors. Some of the things that landlords generally require before they are willing to sign a lease are:
- Tax returns for the last two years.
- Bank statements and financial reports (such as balance sheet or profit and loss statement) that show a history of financial success will give landlords evidence of the company’s ability to pay the rent.
- A business plan that describes what your company does, the company’s short and long-term goals, and the planned uses for the real estate space. This will provide the landlord with evidence that your company has a long-term plan and has thought things through.
- Sometimes a personal guarantee from the business owner is required. A limited personal guarantee is given by owners to guarantee that they will pay the rent in case the business defaults on the rent payment or moves out prior to the end of the lease term. A personal guarantee does not take away any of the obligations of the business under the lease, it merely serves as additional protection for the landlord.
- A resume and professional references can be useful in providing a landlord with evidence of your experience. Landlords may request references from major clients, your accountant, or previous commercial landlord.