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Establishing a business lease at the right location and premises in Arizona is a very crucial step for the success of the business. The wrong choice can run it out of business.

Its vital to find a building that is right for your business, one that with room for expansion and is both, comfortable and attractive to clients. Once an appropriate place has been found, establishing a business lease that is favorable to the tenant is important.

Things to Consider While Establishing a Business Lease in Arizona:

The type of lease, the duration of the lease, renewal options if any, rent, the annual increase in the rent, the security deposit {usually two months rent} and the terms attached to it use by the lessor, etc., have to be discussed and decided upon. A gross lease is the most popular lease used by lessees. The rent for the renewal period has to be either predetermined or fixed at the time of establishing a business lease in Arizona or be based on the fair market value.

The demand for the building will determine if the lessor will undertake the necessary alterations for the building before the tenant moves.

The lessee has to agree to pay for the utilities and for any damages or repairs. He has to obey the building rules and agree to the terms for the usage of the parking area and the common area. He needs to obtain permission from the lessor before putting up any signs, etc. It is better if both parties inspect the premises together and sign a document regarding the condition of the building.

Both parties need to have general liability insurance as well as pay the property taxes for their personal property within the premises. The lessor must have adequate insurance coverage for the property and have fire insurance too.

In case the lessee defaults on the rent, the lessor may file a notice of default {10 days time} and when no action is taken, he may file a notice of termination of the lease and use the security deposit to cover any losses. The lessor has to give the lessee 30 days notice before issuing a notice of termination.

The lessee can negotiate to get a sublease clause or the right to assign the lease in case his company undergoes a merger, etc.

The lessor has the right to enter the property for inspection and carryout repairs that are necessary.

These are some of the basic steps necessary for establishing a business lease in Arizona.

There are firms that offer services as well as products to help run businesses smoothly.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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