There are other alternatives to renting commercial premises as a company domicile

Renting commercial premises: how to avoid the pitfalls?

Many entrepreneurs choose to lease commercial premises to set up their business. Let's discover the advantages, disadvantages and pitfalls to avoid before signing your commercial lease. Follow the guide!
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Commercial premises are the place in which a company chooses to operate. It's important to choose your commercial premises carefully, based on a number of criteria.

First and foremost, its location must reflect your seriousness and credibility. The leasing commercial premises is a solution favored by many entrepreneurs.

Signing a lease is an important act, as it commits you to paying monthly rent for a set period of time...but not only that!

That's why it's essential to examine each opportunity carefully, to make the best choice for the success of your project.

To find out all about it, look no further than this guide!

To rent commercial premises, you need to take the time to study the lease.

Why lease commercial premises?

Renting commercial premises allows you to benefit from your own premises, receive your customers and set up your workspace as you wish. Renting is a good solution for companies who include their head office costs in their overheads.

Renting allows you to quickly find a product in good condition, adapted to your needs and whatever your company's profile.

In addition, signing a lease protects the tenant for a fixed period, with the possibility of vacating the premises every three years. Leasing allows you to keep your investment capacity intact, to ensure the successful development of your business.

What are the steps involved in leasing commercial premises?

There are several different ways to rent commercial premises. The most common is an individual lease: the entrepreneur pays all the costs. It is also possible to opt for shared leasing, which allows costs to be shared (rent, energy costs, maintenance, etc.). This solution is popular with the liberal professions, for example.

We can't stress this enough: the commercial lease is of the utmost importance. With a minimum term of 9 years, it also implies the advance payment of a number of costs: entry fees (also known as "pas de porte") and fees are essential. A security deposit is also required to ensure proper performance.

Finally, it is returned to the lessor on departure, less any damage or wear and tear.

What are the pitfalls to avoid before signing your lease?

There are a number of points to bear in mind if you are to avoid making a mistake.

First of all, make sure you sign the right type of lease. If you don't, you won't be able to sell anything. A precarious lease is not a commercial lease.

Next, don't make any mistakes about the lease term. The minimum term is 9 years, divided into 3 periods of 3 years. If the lease is signed for a period longer than 9 years, the landlord is free to set the rent he wishes to receive. Otherwise, there can be no unjustified increase.

Last but not least, pay attention to all the charges you are responsible for before signing this precious document. By law, landlords and tenants are free to determine how charges are to be shared. In most cases, the tenant pays all local taxes, duties and premiums.

A clause must expressly mention each charge to be paid, otherwise the owner is obliged to pay them.

What are the alternatives to leasing commercial premises?

Many entrepreneurs shy away from this solution because of its cost and inflexibility. Paying a monthly rent doesn't always fit in with the limited means of a start-up company, and neither does providing a security deposit and guarantees.

Other alternatives exist for domiciling your company:

  • Your personal home: even in a good location, it's difficult to receive a customer at home, and this abolishes the boundary between private and professional life. Finally, you will be obliged to publish your home address online and on all your official documents (quotes, invoices, order forms, delivery notes, etc.). It's never a good idea to have a disgruntled customer ring your doorbell on a Saturday morning, waking up your whole family...
  • Company domiciliation: an ideal alternative, using the services of a domiciliation company means you can benefit from a prestigious address, thanks to a range of locations in the most sought-after districts of Paris and other major French cities. They also offer a range of range of made-to-measure services designed to lighten your daily burden These include mail management, switchboard services, administrative and legal assistance, and meeting room rental. So you can enjoy the benefits of working from home without the drawbacks, while making substantial savings.

Using a domiciliation company is truly the most economical and effective alternative for optimizing the success of your project.

It adapts to all profiles, enabling teams to concentrate on higher value-added missions.

Written by our expert Paul LASBARRERES-CANDAU
November 27, 2019
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