Micro leases for first-time entrepreneurs

What counts as a micro lease

Small retail units, kiosks, shared kitchens, studio space, a corner of someone else’s shop, pop-ups and short-term deals. Usually small enough that bigger firms won’t spend time on them. That’s exactly why I do.

Why start small

• Lower rent and a smaller deposit while you prove the idea.
• Shorter terms, so you’re not betting the house on a five-year lease.
• A real address, signage and customers, which lenders and landlords like to see later.

What to check

• Lease or licence: know which one you’re signing Shared and short-term spaces are often licences, which can give you fewer rights. Know which one you’re signing.
• What’s included: utilities, internet, furniture, cleaning, storage, signage.
• Permitted use and permits. A small food business still needs health approvals.
• Personal guarantee and deposit. Keep both proportionate to the deal.
• A path to grow. A right of first refusal on a neighbouring unit, or an easy exit if you need bigger space.

Good next reads

Your first commercial space, hidden costs and the lease calculator.

More detail for small and flexible spaces

• What’s included. Ask whether rent covers utilities, internet, cleaning, furniture and shared rooms.
• Notice to leave. Many short agreements are licences rather than leases, with fewer rights. Read the termination terms.
• Business licence. You still need a City business licence, and the zoning has to allow your use at that address.
• Insurance. Most providers want liability insurance and may name the landlord on it.
• Growing. Ask whether you can move to a larger space in the same building without starting over.