Fit-out of the premises

Many premises will need fixtures, fittings and services installed before you can start to operate your business.

The issue of who is responsible for the fit-out costs should be determined by negotiation and agreement between the tenant and the landlord prior to signing the lease agreement.

Fit-out can be a major cost item and should be recovered from the business. Some fit-out costs, such as the cost of moving plumbing, are often overlooked, so ensure you have an accurate fit-out budget that leaves you with sufficient funds to operate your business.

Sometimes the landlord will specify which tradespeople must be used in order to protect the quality and image of the shopping centre or premises, so be aware that this requirement can add substantially to the cost of leasing the premises.

Handover dates and fit-out period

Allow time for delays in completing the fit-out. Be aware of seasonal shortages in the availability of tradespeople (for example, at Christmas time) when work on your fit-out may cease for a period of time.

What's next...

• Read: BIZGuide: Commercial Leases – main issues to consider