The Importance of Keeping Old Lease Agreements

E-commerce websites are selling a lot more than clothes online. They’re selling space, inventory and, in some cases, even friends. With so much to keep track of, let’s take some time to review just how important it is to document every step of the way as a clothing business owner or e-commerce entrepreneur. Recently, some customers of a small online clothing store wanted to know whether they would have to keep old lease agreements. This is not only a common question for e-commerce and online businesses, but it’s also a tricky subject. One that requires meticulous record-keeping and professional expertise.

The value of records for online store owners Many online shop owners sell merchandise out of their own rooms or an office space. In order to sell something, you must technically have a lease agreement with the owner of the property enclosure. You may only have a verbal lease agreement with the owner of the basement you’re working out of, but that doesn’t guarantee anything. One of the many reasons you want to have lease documents to back yourself up for future situations. There is plenty of inventory to deal with when you run an online shop. Not storing your documents properly could result in an unwarranted loss of space and, in this case, your source of profit. At the very least, you’ll want to keep your eyes on the rent. That’s why the question of whether you need to keep old lease agreements is so critical for online business owners. When calculating business expenses, it’s not just the unit’s monthly rent that you need to keep track of but also the multiple costs that accrue over each lease. This is a lot like the old-fashioned method of storing old clothes in a basement or a study room cabinet. Old records can be a nuisance to sort through, but you’ll be able to tell whether you’ve paid rent for the past few months if you can find old statements. It can also serve for space utilisation, which is another important factor.

There are some e-commerce businesses out there claiming that their storage is full already. This should alert you to what to do and what not to do when renting a space. For example, one owner might have complained about your couch taking too much space in the basement. They may have spent years claiming space that they could have used for other activities. This is an example of a business owner claiming more rent than the space you’re using. The less visible floor space you occupy, the more rent you may have had to pay for that unclaimed space. So if you can’t find old statements or if the unit does not have enough room for both you and your items, you may need to move to a bigger space. Your existing office may be fine for now, but it’s good to know that you have space to expand should you ever want to sell more clothes online.

Clothing entrepreneurs may have lost items in the past due to overlooking old lease documentation. It is not uncommon to forget about paperwork when you are busy with all the things that pile up when you run a business. However, an outdated lease agreement may no longer apply to you later down the line. Some online retailers plan on moving to a bigger location when they have the money. But beyond rent, it’s also important for you to know about space utilisation and how to move between lease agreements. Perhaps the first one was a trial step, but you now have what it takes to grow. That’s when you want to make sure that you can easily break the lease agreement and move somewhere new. The mistake could be that you didn’t document the first agreement properly. The second mistake could be that you assumed your landlord did not follow their end of the bargain. All of the above may have cost you old clients and even old clothes that could have been sold in-store while you were still living there.