Peter Giannakis and Joshua Clifton hosted me on their podcast, Slammed Hospitality Talk. We spoke about what incoming and existing operators need to know about leases. You can listen to the podcast from this page or download the podcast.
My key take aways
Don’t sign a lease agreement unless you understand all the clauses and terms of the agreement thoroughly. You don’t want to be caught off-guard later on.
Understand the numbers – consult a trusted associate or learn up on it yourself.
You may fall in love with a place, but keep in mind the costs and whether the place has everything you need.
Avoid relocation clauses in your lease agreements, if possible.
Keep in mind you may have to back up your lease agreement with guarantees. Evaluate your assets and how much risk you’re willing to take on. Guaranteeing your mother’s house, for example, may
be too big of a risk to take for you.
With a renewal clause, make sure you understand the parameters and are well prepared when the time comes for a renewal.
Draw up a stakeholder agreement with business partners, investors, and other key players in your business. It will make things much less messy if and when the business relationship ends.
Consult an expert if you need help understanding all the terms of a lease agreement.