Commercial leases are complex. Having an attorney review and negotiate the lease with the Landlord can save you thousands of dollars over the life of the lease. Here are six money saving tips:
1. Negotiate everything. You and your attorney should take the lease presented as a draft, not as final. If you’re in a renter’s market, or the property has been on the market for a while, ask for (and often get) a lot of concessions.
2. Rent start versus move-in date. Often you can get one to three months’ free rent to move in and get settled before the first rent payment is due, saving lots of money.
3. Look for buildings with a small load factor. All tenants’ rent includes a portion of the common area (elevators, hallways, restrooms, etc.). Modern buildings generally have less common area, and are a better value. Measure your space to be sure the landlord’s rent calculation is accurate.
4. Document the move-in condition of the premises. Do a walkthrough with the landlord and list any visible damages before moving in. Have the landlord sign the list of damages and attach it to the lease. Consult this list when moving out so you don’t pay for someone else’s damages.
5. Additional charges. Know what is included in the rent and what is not (for example, utilities, property and local taxes, janitorial and insurance). Is there a rent increase every year?
6. Term of the lease and options to extend. If you are growing, a short lease may be best for you, as you may outgrow your space soon. If not, negotiate options to renew the lease for like terms if certain conditions are met.
Knowing what to look for can save you money! Hire an expert.