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.

Hardwood vs. Laminate Wood Flooring

One important factor in determining the market value of a home is its flooring. Wood flooring is a more popular choice because of its natural and warm appearance, and wood will always look timeless. In newer homes today, it is harder to find original hardwood floors because of the high pricing. Yet to achieve that natural wood look, one option homeowners can take to increase the value of their home is to install laminate wood flooring. There are, of course, pros and cons to both hardwood and laminate wood flooring. Let’s tackle these and find out which one is best suited for your lifestyle and budget. 

Should You Rent a Studio or a One-Bedroom Apartment?

Now that you have decided to try living independently, the next decision you will have to make is to choose the type of apartment that suits you. Of course, since you are just starting out and you probably just started on your first job as well, the budget for your rent is a valuable factor when looking for a place to rent. You will typically find studios and one-bedroom apartments to fit your budget just right. Both options sound fantastic, but which one is more preferable? The answer depends on their pros and cons.

Eight Inexpensive Ways to Add Curb Appeal to Your Home

(Photo Credit)

Making sure your home makes a good first impression to potential buyers is crucial. A home with an unappealing exterior starts showings off on the wrong foot. If a buyer thinks the exterior requires a lot of work, it may affect the way they view the interior of the home; even if it is stunning! Sprucing up the outside of your home is important prior to selling, but it’s not something you have to break the bank to do. Check out these low-cost and free ways to improve your home’s curb appeal:

1. Clean out the gutters

The condition of a home’s roof is one of the many things buyers take note of when determining to buy a home so they may notice if your gutters are full of leaves and debris, which can be unattractive.

2. Unclutter the Yard

Put away trash or recycling bins. Buyers may think there isn’t a good place to store them if you leave them out. Also roll up hoses and tidy up toys if necessary.

3. Paint the front door

A fresh coat of paint will give your home’s front entry way a clean look that welcomes potential buyers inside.

4. Add potted plants

Adding container plants or hanging plants to your porch will give your home an inviting look similar to landscaping, but without the large expense.

5. Trim bushes and trees

Cut wild bushes and trees that block the view of your home or driveway so buyers can see what they are actually interested in, instead of the overgrown

6. Improve outdoor lighting

Lining the path that leads to the entryway of your home with small landscape lights adds safety value to your home.

7. Update house numbers

Modernize your home by replacing old and outdated house numbers. Vinyl numbers are becoming a popular and inexpensive trend for house numbers.

8. Revamp the mailbox

A fresh coat of paint and new numbers will give your mailbox a quick and easy facelift or replace your old mailbox with a new one. Mailboxes can generally be found at a reasonable price.

This post provided was provided by a contributor from Carolina Lanterns, a company specializing in custom-made copper and brass lanterns. Click here to view their products.

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Self Home Inspections

You can learn as much as you can about the condition of the property and the need for any major repairs, fixings and installations before you buy. Home inspections will point out the positive aspects of home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have much clearer understanding of the property you are about to purchase, and will be able to make a confident buying decision.

There’s a few things you can check for yourself when looking at a new property to make sure you don’t make a big purchase that may have underlying issues. following suggestions will help to get the home ready for the home inspection, and minimize the need for the home inspector to make a return trip to the home, which may cost an additional fee.

Be sure you ask the real estate agent or the property owner how the drainage systems function, and when the last time was that they were repaired. One of the most costly and devastating problems new home owners deal with is basement flooding, which can destroy stored items as well as lead to mold and mildew problems. Make sure drainage systems point away from the house, and won’t overflow into areas near the basement.

Are there overhanging trees on the property, or are there trees with the capability to overhang the home in the future? These can be a major liability for the home, and should be taken into account as a necessary repair at some point.

Some things like furniture and appliances won’t be covered by the previous home owner, and you might be strapped for cash when you first move in. Rely on a company like Central Texas Home Rebates to help give you some cash to finance those purchases. 

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Buying Homes in a Down Market

Beautiful Tenerife

There's quite a bit of talk about the real estate market getting better in the near future, but at the same time there is a great deal of uncertainty. Certain areas of the country have been doing well, and home buyers and investors have been eager to snatch up homes with the opportunity to sell them at a higher price down the road. This leads people to talk about the dreaded bubble word, which makes me and the rest of the world worried.

There are quite a few areas in the United States that are seeing a nice turnaround though. Washington D.C. is an example of an area that's shown significant signs of recovery, for an area that's struggled quite a bit in the last 30 years. Inventory of unsold homes is down to 39 in a neighborhood where last year at this time it stood at 78. Housing prices are again climbing, making home buyers more eager to sell their homes, and more real estate transactions occur as a result. Pockets of Arizona and Texas are also seeing ridiculous growth expansion, where homes are being sold at double the rate they were a year ago, with no decrease in home values. The question is if these gains can help carry the rest of the real estate industry out of its slump. There are no sure bets on the entire market returning to balance, let alone shifting back to a sellers market. Still, many experts say the bottom has been reached in some markets, and the only thing to fear is another housing bubble. Only time will tell if we can learn from our previous mistakes.

If you are looking to buy a vacation home abroad, or just move in to a new area, you may think to intensify your search before prices begin to climb again. Our advice however is to always make a vacation home purchase or new home purchase based on the area and the home itself, and on the fact that you believe you're getting a great bargain on the area. Home prices do in fact go up from down markets, and you always hear success stories while it addresses this subject about the general residential market, offers some useful homebuyer tips that apply whether you are hunting for a primary residence or a second home.

Of course, it's always a good idea to monitor home prices and real estate conditions in an area that you know you would one day like to live. Taking a look at Tenerife property for sale (one of the most beautiful areas of the world) you can find studios, apartments, villas, houses and businesses for sale that are all reasonably priced for an area that has quite a high demand. Now would be a good time to contact a real estate agent there about available property if you would like to move there in the near future. 

Learn About Sheriff Sales

Several people have asked me, how does a sheriff's sale work? Since I am currently in the process of flipping a sheriffs sale house, it is a topic that is fresh on my mind. Okay here's the reader digest version as I understand it. Let's say you have a house owned by Bart Lancelot. Bart did not pay his mortgage his second mortgage, or his credit cards. Long story short, Bart loses the house, he's foreclosed on, the two mortgage companies have a lien on the house (actually they already had one) and the credit card company decides to put their lien against the house also. After the house goes through the foreclosure process, it may go to a sheriff's sale. All of the creditors named on the foreclosure and the general public may go to the place of bidding and place a bid on the house.

The starting bid is set by the primary lien holder. They may set the bid at whatever they choose. (An interesting side note  many homes do not sell at sheriff's sale because the start bid is too high.) Highest bidder wins. Different states and counties have different laws about payment methods. The county I reside requires cashiers check for the full amount the day of the sale. I have seen other areas that require 10% down the day of and the balance within say, 30 days, or something similar. Check with your county's sheriff's office for details. Anyway, the winning bid goes to pay off the people who had liens against the property (mortgage companies, credit card companies, etc.) 

If by chance, the money is not enough to cover the debts, a judge will determine where the money goes most likely, and someone will just be out of luck. If by chance the winning bid is more than what is owed, the former owners will receive the overage. There are many potential snares here so buyer beware. If one of the lien holders was not named on the foreclosure, there could be some big problems. I know from experience. That is why you must consult with an attorney before, during, and after you buy a home from a sheriff's sale.

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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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Finding Your Dream Property

Everyone wants to find their dream home, the one with a lot of lakefront, a pontoon boat and a nice sandy beach, or one up in the mountains with fantastic views and right next to a prime ski resort. For many people, this means searching around for many upscale homes available in areas all over the country. There are a number of ways to define an upscale home, but for real estate purposes, an upscale home is usually twice the value of surrounding homes. Basically, upscale homes are houses that have a high number of rooms, high square footage, and a unique design or other such aspects. Many of these homes include amenities such as a fireplace, swimming pool or specialty rooms.

These homes can have very unique designs, as mentioned above, which means they can often be custom-built to suit what you want in a home. There are also many models you can choose from, depending on who you are dealing with and where you want the home to be located.

Buying an Upscale Home

When looking into buying one of these pricey but beautiful homes, general and specific research should be of utmost importance in the process. Upscale homes can be found in almost any location. Whether your dream is to live on a ranch, a secluded wooded area, a gated community or in a simple neighborhood, you can find an upscale home in your desired environment. The key is to find a good realtor to help you along the way. He or she should specialize in luxury homes, and will have access to a wide range of upscalehome listings, so you will be able to choose from the greatest number of homes that fit your needs and your budget.

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Real Estate Investment Time Again?

In my opinion, there is no quicker, easier or safer way to build wealth than through real estate. In fact, the laws of this land are written heavily in your favor to purchase real estate, user real estate to lower your income taxes, and to keep most or all your investment gains. The same can’t be said of any other investment vehicle.

Buying Property
Boy, is it easy to qualify for a home loan. Would you loan a stranger $250K? Banks do it all the time. The hardest part of getting a conventional loan is the down payment, but banks will even loan you the down payment! There are many programs out there in our local Syracuse area geared towards first time homeowners that can get you into a property. They can’t wait to hand over their money. So take it.

Owning Property
Homeowners can deduct interest on mortgages and property taxes on their primary residences. On investment properties, government forces owners to depreciate residential property over 27.5 years, even though in reality the property is appreciating. So that means if the rent minus all expenses puts real money into your pocket year after year, your taxes can legally show a loss. For example, a condo which cost $275K is depreciated at $10K per year. Let’s say that every month, the positive cash flow from that property is $500, or $6K income for the year. But because the property “depreciated” $10K, my loss on the books is $4K, and consequently, my taxable income is reduced by $4K.

Selling Property
Homeowners can keep capital gains tax-free (up to $500,000 for married couples filing jointly or $250,000 for singles), provided that the home was the primary residence of record for at least two of the prior five years. The exclusion can be taken every two years. On investment properties, Section 1031 of the Internal Revenue Code allows owners to roll the gain from the sale of the old property to a new property without paying tax, provided that the new property is equal or greater in value to the old property and all of the proceeds from the sale of the old property are invested into the new property. We're seeing this happen all the time out here in New York.

So with all these benefits, if you aren’t into real estate, you should ask yourself why.

This post was contributed by William Cross Reality, providing Syracuse real estate.