when starting a business, entrepreneurs definitely need to rent business premises. However, many entrepreneurs have to encounter many problems when renting a house. Therefore, you must pay attention to some details of the rental contract! Learn from Mande Enterprise Service.

1. how to avoid the landlord's breach of contract when the lease term is short?

I'm sure many entrepreneurs have encountered such a thing. Because the lease term is too short, the landlord saw that the business was good and drove himself away, and then he started his own business. What should I do?

1. There are two possibilities in this situation:

(1) The landlord thinks that the business is good and wants to raise the rent

According to his own business situation and business negotiation ability, he argues with the landlord, and similar situations will have different results. Maybe the landlord took the initiative to reduce the rent for stability; Or it may collapse because of the rent.

(2) The landlord has a bad reputation, and forcing people to run their own businesses

What is lost to the landlord is reputation and liquidated damages. As long as the landlord is willing, no matter how long you rent it, you can't stop this kind of landlord's behavior, so it is meaningless to sign a long-term contract.

2. what should I do in the above situation?

Our entrepreneurs should make two points in the contract to improve their stability.

(1) specify the priority of lease right under the same conditions after the contract expires

(2) specify the decoration amount, and pay the decoration fee for breach of contract

Take catering as an example, entrepreneurs need to decorate after renting a house. If they sign the contract for 2 years, the landlord will have to pay the decoration fee for the same period before the expiration.

when compensation occurs, it will be based on the invoice issued by the decoration enterprise, that is to say, most entrepreneurs decorate with receipts. Therefore, when decorating, you can sign a tripartite agreement (clear the landlord's approval of the decoration fee), or find a formal enterprise to issue a decoration invoice.

second, should the lease period be long or short?

when renting a house, many entrepreneurs want to sign a contract for 1-3 years for stability, and some even sign a contract for 5 years. It is worth noting that there are business risks and contract compensation risks here.

risk 1: blindly increase the deposit ratio.

In order to maintain stability, some entrepreneurs have agreed with the landlord that the lease period will be three years, and the landlord will increase the deposit ratio. Entrepreneurship is at risk of failure at any time, and too high a deposit will increase the loss after the failure of entrepreneurship.

risk 2: considering the start-up cycle

about 61% of start-up projects end in the first year, 31% in the second year, and less than 1% fail after three years, and the rest are entrepreneurs.

Take the life cycle of catering as an example. The average life cycle of catering is 1.5-1.5 years, that is to say, most of the failures in catering occur after half a year. If the signing time is too long, when it is found that the competition pressure in a region is too high or the passenger flow is too small, there will be additional costs when changing the region, and the deposit will also be paid for abandoning the project.

Therefore, it is not recommended that the founders, especially the entity entrepreneurs, sign contracts for more than 1 years.

If the business is successful, it is also an acceptable choice for entrepreneurs to ask for more rent. But if it fails, the long contract period will increase the loss.

Therefore, entrepreneurs must consider carefully when renting a house, and don't think that these small details will not affect your business. Many times, some small things will increase your chances of failure in starting a business.

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