Signing a commercial property lease can signify the beginning of something great for your business. It provides you with an opportunity to house your business operations and focus your efforts on growth. However, making a mistake while negotiating a commercial property lease can be a costly and embarrassing blunder. Sometimes people get so excited about their new commercial property for rent that they forget to read the fine print before signing.
You want to make sure you are clear on everything in the lease prior to making any decisions. You can establish a great relationship with your landlord by being clear from the start and having a thorough understanding of what the contract consists of prior to beginning your lease. Rakow Group is one of the industry leaders in helping people find commercial property for rent and negotiating commercial property leases. Below, you will find a few commercial lease mistakes to watch out for ahead of closing on commercial property for rent.
Accepting the Standard Lease Agreement
Leases are contracts that can be amended based on either of the involved party’s wishes. You don’t have to accept the standard lease agreement if it doesn’t include everything you need. Additionally, with the standard lease agreement, your business is most likely going to have to take the majority of the financial burden for any damages that happen to the space. Don’t make the mistake of accepting the standard lease agreement if it doesn’t meet your standards. You have rights as a future tenant, exercise them!
Neglecting Real Estate Taxes
Taxes are a fact of life for any business or property owner. Unfortunately, tenants can have a tendency to neglect considering what the real estate taxes will be when signing a commercial lease agreement. This can be a costly mistake. Make sure you understand what percentage of the building’s real estate taxes you are responsible for covering as a tenant.
Missing Rate Fluctuations
If the lease states that the landlord can reevaluate the space during the lease and change rates like water and electricity, make sure you catch it. Ensure that you have an understanding of rate fluctuations prior to accepting the terms. It’s certainly possible for a landlord to double or even triple rates if it is within their legal boundaries.
It’s understandable that business owners are always looking to save money. However, going into a commercial lease negotiation alone is a big mistake. Instead, invest some time and money into finding a qualified broker to help you find the best commercial property for rent and negotiate the best lease terms. A brokerage firm like the Rakow Group can be a priceless asset during commercial lease negotiations.