Tips For How to Negotiate a Commericial Property Lease

Starting a new business can be overwhelming and challenging, and one of the most difficult parts can be finding an affordable office space. If this is your first business the process of finding a lease that works for you and your business can seem daunting, but there are a few questions and things to consider before jumping into a lease.

Setting the Term of your Lease

The term and rent of your location is the first point that needs to be negotiated. The trick to this is to not over commit if you are a small business. It's recommended that small businesses negotiate one to two year leases with the option to renew. You will also want to discuss and negotiate rent increases over the term so you are not unexpectedly hit with a rent increase with no warning from your landlord.

Be prepared for your landlord to push back, they may try to lock you into a longer agreement by offering deal sweeteners. It is helpful to bring a broker to negotiations, as they know about the local market and what sweeteners to look out for.

Expenses

Like residential leases, landlords often tack on extra expenses like maintenance fees, upkeep fees and so on. Make a point to ask the necessary questions during negotiation: what about utilities? how are these extra charges measured? Also look into the "hidden fees" and policies and inquire about the average costs of previous tenants.

Maintenance and Repair

Unlike residential leases where the brunt of the maintenance and repair responsibilities fall on the landlord, commercial leases are different. Commercial leases vary in their approach to this, some stipulate that it is the tenant that is responsible for all the property upkeep while other specify that the tenant is only responsible for certain repairs etc.

Defaulting

Often businesses get closed down due to defaulting their lease. In order to protect your interests and your customers, it is important to know exactly what defaulting terms you are agreeing upon upfront. Talk with your landlord and decide if you will be locked out immediately or if you will be granted a grace period. Will you be able to negotiate for more time for yourself if you default? All of this information is important as it can save you  and your business money.

Read Your Lease

It goes without saying that you should always read and reread your lease carefully and completely to make sure you fully agree with and understand all of the terms and clauses.

About the author: Mary is a guest contributor from The Lansing Economic Area Partnership or LEAP, a coalition of area leaders committed to initiating Lansing, Michigan economic development.

Property Condition Assessment Inspectors

An official property inspection is basically a visual examination of your residence that is performed by a licensed inspector. The process is totally objective, and the chosen professional is there to speculate how your property is operating. Most would compare the course of action to that of a physical examination conducted by the family medicine physician. Both are thorough and necessary. However, do not confuse this procedure with a house appraisal, for it does not constitute a market value by applying a pass/fail grade. It only indicates the present condition of your house.

What's the Point?

It is completely normal to question the significance of a property condition assessment, especially if you have never administered one. You need it to summarize the current state of your dwelling by reporting any problematic symptoms before a disaster occurs. You will feel secure in knowing that you were able to prevent a mishap by seeking the assistance of an inspector.

What Should One Expect?

In a property inspection, everything from the condition of the heating and cooling system to that of the roofing and floors are included. The inspector observes the physical and underlying structures of your residence, and he or she is likely to jot down notes on what needs improvement and what is in good shape.

The Final Cost

Inspection fees ordinarily vary depending on the size and type of housing that you own. The price is also determined by the features and the age of the individual property. Thus, it is a good idea to carefully compare costs before making a decision on who you want to inspect your property. The costs may not be agreeable to you, but you must not let it affect your choice to go through with an inspection altogether. Remember that every residence requires an inspection at some time or other to ensure the quality of the property. Furthermore, do not resort to examining the property yourself. There are certain skills that you may lack in property inspecting, and only a professional may be able to detect the smallest of problems. Seek the best qualified.

Finding a Good Inspector

You can easily find a well-trained property inspector by listening to word of mouth (be cautious about who you trust), looking through referrals on websites, or visiting local inspection agencies to question individuals in person. Keep in mind that an ideal inspector will always display competency, interpersonal skills, and professionalism. Choose accordingly!

In order to stay confident in the qualities that your house offers, seek a licensed inspector to perform your property inspection. Your property deserves as much care as you do!

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