Searching for the right office space is a mission. You will have limited time to do an efficient search to get a space that meets your financial and other requirements.

The location of the office / development centre / works depends on various factors like the nature of business, the stage of development that the business is in, the activities that will be carried on in the office space, etc. Some of the relevant issues are:

Location

The location of your business is crucial. Location facilitates its success and happiness of everyone associated with it. The rent you have to pay and the product you are going to sell will also depend on the location.

You can select a location from any of the following zone.

1. Mixed residential use zone
2. Commercial use zone
3. Light industrial use zone
4. General industrial use zone
5. Special and hazardous industrial use zone
6. Institutional use zone

Space

Analyse your requirements i.e., square footage, parking and any other critical factors. You will need space for employees and visitors. Limit the size to what you really need.

Evaluation

Once you decide on the location and space you can conduct the following study on the premises and documents.

Evaluation of premises

1. Fitness of the building
2. Outward appearance
3. Damage or defects
4. Evaluate security
5. Evaluate access and convenience
6. Consider improvements
7. Consult with experts, if necessary

Evaluation of documents

The following documents need to be thoroughly scrutinised before you buy a property.

1. Conversion certificate
2. Parent deeds
3. Index of Lands
4. Record of Rights
5. RTC
6. Mutation
7. Tax paid receipts
8. Approvals, if any
9. Encumbrance certificates
10. Family trees wherever relevant and inspection of originals

Negotiation

When you negotiate, do confirm the following:

1. The rates, terms, and any other needs you fell are relevant
2. The use of common areas by yourself and your visitors
3. Security and house keeping facility
4. If you are going for a lease go for a short period rather than a long lease
5. Your rights to expand within the building or to make improvement
6. Enquire about taxes, insurance, repairs and utilities
7. The deposit and advance
8. Specify the improvements the leaser or seller needs to make before you occupy space

Buying

Buying a building to start your business is a major decision. Think about buying a building if it’s an investment option along with your business space requirements. Careful market and financial analysis and negotiations are critical to a good result. Having a highly skilled and experienced professional to provide you the right tools and information will help you make the best and most profitable purchase decisions possible.

If you do choose to buy, it can have several advantages:

• You control your own premises and can stay there as long as you like

• You can choose to occupy the premises yourself, to rent them to someone else, or to sell

• Your costs are relatively fixed, particularly if you have a fixed-rate mortgage, whereas rents can increase significantly over time

• You can alter the premises to suit yourself - subject to legal restrictions

• Over the long term, the value of the property may rise

Do make sure that the following clauses get mentioned in the sale deed:

• Full details of the parties

• Situation and ownership of the property

• Title

• Consideration – Amount and payment details

• Schedule of the property

Lease

Lease is a legally binding contract by which you agree to pay rent for a certain period of time. Lessee agrees to abide by conditions and lesser agrees to let lessee’s business occupy the space for a set amount of time.

A lease agreement can have the following clauses:

1. Facilities and amenities to be provided by lesser
2. Rents, reimbursements, term and termination
3. Rules and regulation for use of premises

What are the legal implications when choosing business premises?

If you own or occupy business premises, you need to understand the legal obligations and restrictions that affect you. For example:

• The premises must have building permission that allows them to be used for your kind of business.

• You must comply with building, fire and health and safety regulations.

• You also need to provide a suitable working environment.

• You need to comply with the terms of any lease or licence agreement.

• For some businesses, you may require a licence to operate or to sell certain products.

• There may be restrictions on times when deliveries are allowed, noise and pollution levels, and how you or your customers dispose of waste.

Vinod Kuriakose

(The writer Vinod Kuriakose can be contacted at feedback2vinod@yahoo.co.uk)