Finding the perfect location for your childcare program is one of the most significant steps you will take as a provider. The right space can set the stage for a thriving, safe, and welcoming environment for children and staff. However, the process of securing a commercial lease can be complex. A standard lease agreement might not account for the unique needs of a childcare business.
Before you sign on the dotted line, it is essential to conduct thorough due diligence. Asking detailed questions can help you avoid costly mistakes, unforeseen complications, and regulatory hurdles down the road.
This article outlines the critical daycare lease agreement questions to ask to ensure a potential property is the right fit for your program, your staff, and the families you serve.
Zoning and regulations
Before determining the best location, your first step is to confirm that the property is legally permitted to operate as a childcare program. Navigating local ordinances and state licensing requirements can be complicated, but it is a non-negotiable part of the process.
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Is the property properly zoned for a childcare program?
Zoning laws dictate how a property can be used. A space zoned for retail or general office use may not automatically be approved for a childcare program. Contact the local city or county planning department to verify the property's zoning designation and find out if a "conditional use permit" or a "zoning variance" is required.
Obtaining these permits can be a lengthy and expensive process, so it's crucial to understand the requirements upfront. Ask the landlord if they have ever leased the space to a childcare program before and if they are aware of any zoning restrictions.
Does the space meet all local and state regulations for childcare facilities?
Childcare programs are subject to strict regulations that cover everything from the number of bathrooms to the amount of outdoor play space. These requirements are in place to ensure the safety and well-being of children. Key areas to investigate include:
- Egress compliance: The facility must have a sufficient number of clearly marked, unobstructed exits for safe evacuation during an emergency.
- Outdoor space: Many states require a minimum amount of secure outdoor play area per child. If the property does not have a dedicated yard, is there a safe, accessible public park nearby that is approved for use by your licensing agency?
- Capacity: Licensing bodies set limits on the number of children you can serve based on the usable square footage of the facility. Ensure the space can accommodate your desired enrollment numbers.
- Plumbing: Regulations often specify the required number of toilets and sinks per child. Check if the current plumbing meets these standards or if modifications will be necessary.
Safety and accessibility
Creating a secure and inclusive environment is the cornerstone of any successful childcare program. The physical space plays a massive role in your ability to keep children safe and accommodate everyone's needs.
Is the space safe and secure for children?
A comprehensive safety assessment goes beyond basic building codes. Consider the following:
- HVAC systems: Is the heating, ventilation, and air conditioning system in good working order? Proper ventilation is critical for maintaining healthy air quality and reducing the spread of airborne illnesses. Ask about the last time the system was serviced and who is responsible for its maintenance.
- Environmental hazards: Inquire about potential hazards like lead paint, asbestos, or radon, especially in older buildings. A formal environmental assessment may be necessary.
- Building security: How are the entrances and exits secured? Is there a system in place to monitor who enters and leaves the building? Are outdoor play areas fully fenced and locked?
- Noise ordinances: Are there any local noise ordinances that could affect outdoor playtime or create issues with neighboring businesses or residents? Understanding these rules can prevent future conflicts.
Is the space accessible to children with disabilities?
Your childcare program needs to be welcoming to all children and families. Under the Americans with Disabilities Act (ADA), childcare programs must make reasonable accommodations to ensure accessibility. Evaluate whether the space has features like ramps, accessible restrooms, and doorways wide enough for wheelchairs. If the property is not fully accessible, discuss with the landlord who would be responsible for the cost of necessary modifications.
Preschool Classroom Safety Checklist
A free checklist to help you maintain a safe learning environment for the children, staff, and families at your childcare program.
Space and layout
The flow and function of your childcare program are directly tied to the layout of the physical space. A well-designed facility can enhance learning, improve supervision, and create a more organized operational environment.
Is there enough space for the number of children you plan to serve?
As mentioned, your state licensing agency will have specific requirements for indoor and outdoor square footage per child. Calculate the usable square footage of the potential space to determine your maximum capacity.
Remember to account for areas that cannot be included in this calculation, such as hallways, kitchens, bathrooms, and administrative offices. Make sure the total space aligns with your business plan and enrollment goals.
Is the layout conducive to a childcare program?
An open floor plan might seem appealing, but a childcare program often needs distinct areas for different age groups and activities. Consider whether the layout supports:
- Separated classrooms: Can you create separate, age-appropriate spaces for infants, toddlers, and preschoolers?
- Visibility: Can staff easily supervise children in all areas of the room?
- Shared spaces: If the property has shared spaces like hallways, elevators, or a lobby, what are the rules for their use? Will you have exclusive access to your leased area, or will you share it with other tenants?
- Practical needs: Is there adequate storage space for supplies, a designated area for staff breaks, and a kitchen or food preparation area that meets health codes?
Cost and lease terms
The financial aspects of your lease will have a long-term impact on your program's sustainability. A thorough understanding of your daycare lease agreement questions and all associated costs is essential for accurate budgeting and financial planning.
What is the total cost of the lease?
The base rent is only one part of the financial equation. Be sure to ask about all potential expenses, including:
- Utilities: Who is responsible for paying for electricity, gas, water, and trash removal?
- Common Area Maintenance (CAM) fees: In multi-tenant properties, landlords often pass on the costs of maintaining shared areas. These fees can cover landscaping, security, and parking lot maintenance.
- Property taxes and insurance: Clarify who is responsible for paying property taxes and what level of insurance you are required to carry.
What are the terms of the lease?
A commercial lease is a binding legal document. Pay close attention to these key terms:
- Lease length: How long is the lease term? A longer lease can provide stability, but a shorter one may offer more flexibility.
- Renewal options: Does the lease include an option to renew? If so, what are the terms for renewal, and how is the rent for the new term determined?
- Termination clauses: What are the conditions under which you or the landlord can terminate the lease early? Understand any penalties associated with early termination.
Future growth
Your childcare program may grow over time, and your physical space should be able to accommodate that growth. Thinking ahead can save you from the disruption and expense of moving in a few years.
Does the space allow for future expansion?
If you plan to increase your enrollment, does the property have additional space you could lease in the future? Ask the landlord if there is an option or "right of first refusal" on adjacent units. This would give you the opportunity to lease neighboring space before it is offered to other potential tenants.
Are there any restrictions on making changes to the space?
As your program evolves, you may want to make changes to the layout, such as adding or removing walls, upgrading fixtures, or painting. Discuss with the landlord what types of alterations are permitted and who is responsible for the cost. It is crucial to get approval for any modifications in writing to avoid disputes later.
Final considerations before you sign
Choosing the right space for your childcare program is a decision that will shape your business for years to come. By asking these critical questions before signing a lease, you can protect your investment, ensure regulatory compliance, and create a safe, nurturing environment where children can thrive.
It is always wise to have a lawyer who specializes in commercial real estate review any lease agreement before you commit. Their expertise can help you navigate complex legal language and negotiate terms that are favorable for the long-term success of your program.
