Do you know that there is little you can do after signing that commercial lease? Whether you are leasing for office, retail space, or any other business use, immediately you sign the dotted line- the ink gets dry. Therefore, it is imperative that you read the entire document carefully, taking note of the terms and conditions and any nuances. Before signing, you must also ensure that you’re comfortable with the charges, negotiate as much as you can for the least possible charges.
Here are some questions you must ask before signing the lease document
Have you understood the contents of the lease?
A lease document is usually a lengthy one and not very interesting to read. However, you must read carefully and understand all that is contained there. Many proprietors will use general lease terms and sometimes may lack the details you’ve already discussed. Reading ensures that you confirm that the document is in line with what you’ve negotiated and take out the irrelevant information. Check out for the start and the end date of the lease document. Ensure also what you’ve discussed is correctly captured. What are your obligations and that of the property owner in the lease document?
Have you negotiated for the best terms?
Before you sign the lease document, you need to explore every opportunity for negotiation. As you read the lease, put down things that you’re not comfortable with. That would form the basis for your discussion. Most of the property owners put in place some terms deliberately so that in case you don’t read, they take advantage of your ignorance. Again, you may be surprised how he/she is willing to negotiate- The document is not ‘cast in stone’.
Do you understand the Common Area Maintenance terms?
The percentage of the building you’re renting is what determines the CAM fees you pay. There is the part that the proprietor must pay and what you are obligated to pay. Before you sign the lease document, you must confirm that you have the details right and make sure you’re not paying what the proprietor I supposed to pay for. Are there any administration fees, which are more than three percent? If you are not careful on this one, you could pay for build-out costs for other units.
Are you responsible for capital expenditures?
Occasionally, the property will need repairs; the roof, HVAC, and other expenditures. It is important to know your responsibility in such and the standards from town to town. Any lease whose terms shift the burden to you should be avoided. Don’t sign for things that are irrelevant to you and if you have to pay for any of these, try to negotiate so that you pay for maintenance expenditure only. Capital expenditure is the responsibility of the owner and not you unless it was your mistake- that should be captured in the lease document.
One of the most important things you need to consider when signing a lease is your obligations as a tenant. Look for a reputable commercial lease Brooklyn company that will guide you into the details of leasing and ensure that the document takes care of your rights.