{"id":561172,"date":"2018-12-09T14:10:05","date_gmt":"2018-12-09T19:10:05","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/the-importance-of-understanding-leases\/"},"modified":"2022-01-31T12:42:43","modified_gmt":"2022-01-31T17:42:43","slug":"the-importance-of-understanding-leases","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/the-importance-of-understanding-leases\/","title":{"rendered":"The Importance of Understanding Leases"},"content":{"rendered":"
\"\"<\/p>\n

Leases should never be overlooked when it comes to buying or selling a business. \u00a0After all, where your business is located and how long you can stay at that location plays a key role in the overall health of your business. \u00a0It is easy to get lost with \u201clarger\u201d issues when buying or selling a business. \u00a0But in terms of stability, few factors rank as high as that of a lease. \u00a0Let\u2019s explore some of the key facts you\u2019ll want to keep in mind where leases are concerned.<\/p>\n

The Different Kinds of Leases<\/strong><\/p>\n

In general, there are three different kinds of leases: sub-lease, new lease and the assignment of the lease. \u00a0These leases clearly differ from one another, and each will impact a business in different ways.<\/p>\n

A sub-lease is a lease within a lease. \u00a0If you have a sub-lease then another party holds the original lease. \u00a0It is very important to remember that in this situation the seller is the landlord. \u00a0In general, sub-leasing will require that permission is granted by the original landlord. \u00a0With a new lease, a lease has expired and the buyer must obtain a new lease from the landlord. \u00a0Buyers will want to be certain that they have a lease in place before buying a new business otherwise they may have to relocate the business if the landlord refuses to offer a new lease.<\/p>\n

The third lease option is the assignment of lease. \u00a0Assignment of lease is the most common type of lease when it comes to selling a business. \u00a0Under the assignment of lease, the buyer is granted the use of the location where the business is currently operating. \u00a0In short, the seller assigns to the buyer the rights of the lease. \u00a0It is important to note that the seller does not act as the landlord in this situation.<\/p>\n

Understand All Lease Issues to Avoid Surprises<\/strong><\/p>\n

Early on in the buying process, buyers should work to understand all aspects of a business\u2019s lease. \u00a0No one wants an unwelcomed surprise when buying a business, for example, discovering that a business must be relocated due to lease issues.<\/p>\n

Summed up, don\u2019t ignore the critical importance of a business\u2019s leasing situation. \u00a0Whether you are buying or selling a business, it is in your best interest to clearly understand your lease situation. \u00a0Buyers want stable leases with clearly defined rules and so do sellers, as sellers can use a stable leasing agreement as a strong sales tool.<\/p>\n

Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

Chinnapong\/BigStock.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Leases should never be overlooked when it comes to buying or selling a business. \u00a0After all, where your business is located and how long you can stay at that location plays a key role in the overall health of your business. \u00a0It is easy to get lost with \u201clarger\u201d issues when buying or selling a […]<\/p>\n","protected":false},"author":2,"featured_media":561174,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5,6,7,3,8,2],"tags":[],"class_list":["post-561172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer-articles","category-buyer-faq","category-buying-a-business","category-seller-articles","category-seller-faq","category-selling-a-business"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=561172"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/561174"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=561172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=561172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=561172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}