10 Common Mistakes Tenants Make When Negotiating a Lease
We all done mistakes, but when it comes to leasing office space for your trade, mistakes equal money, sometimes big amounts.
It's no secret to vendors that there are great deals to be had in this tenant-friendly financial atmosphere. However, in any economy, if you trust inexperience, excitement, and an obstinate proprietor, you have a formula for some catastrophic decisions.
Here are the ten most common mistakes tenants make when leasing office space, as well as an insider’s take on how to avoid making them.
1. DEFICIENCY IN PLANNING
Accept it or not, many tenants aren’t clear on what precisely they want. If you’re out looking for twelve thousand feet but you truly need fifteen thousand, you’ll have difficulties. Hire an architect do space analyze the program and figure out what dimensions you need.
2. LACK OF TENANT REPRESENTATION
Brokers recognize the inside and outside details of the market; they can negotiate for you, and top of all, can narrow down the property that would be best for your specific venture. Their proficiency and guidance are essential.
3. LACK OF DOCUMENT SCRUTINY
Renting a commercial space comprises whole of paperwork. One of the major problems with the tenants is that they do not aware of with what they sign. Make sure your lease property is officially zoned for business purposes and for your use in specific, and that it follows to various safety measures and is built in accordance with the normal guidelines and protocols.
4. RENT AND SECURITY DEPOSIT
Before paying for the monthly rental, many people do not target analogous properties and end up paying unreasonably high prices. It is essential to compare similar commercial assets and find out the running market rent in that area before arriving into negotiations with the landlord. Again, this is where a tenant representative comes nearby and will do all of this unhealthy work for you!
5. USING AN UNEXPERIENCED LAWYER
Select a real estate lawyer who's very practiced in negotiating a lease, and with whom you feel calm. Also, check his previous work with other tenants he's helped with their leases. He knows the game of business and can recommend you on getting the best possible agreement for your particular state. You also want a lawyer who understands the talent of diplomacy.
6. NOT CHECKING LEASE TERMS
A renter must read and recognize the lease terms wisely. Are you happy with the notice period? Let’s agree the landlord has the right to transfer you to another flat or space in the building. How much notice period does he need to give you? What if the contract says 30 days? Do you have a hired and assignment facility? Is it rational?
7. STICK TO ANYONE PROPERTY
You're driving yourself into a massive disadvantage when you think a specific space will "create or cease" your occupation. You have to go into discussions knowing that if you don't get a reasonable deal, you can move on and your trade will succeed somewhere else.
8. UNDERESTIMATION OF NEGOTIATING LEVERAGE
Tenants have a leaning to think that the owner is supreme, but that’s not the incident. Eventually, a landlord is in a service industry, and his business is to retain his building occupied.
9. WORKING WITH A UNFAIR BROKER
Tenants sometimes think that if they’re signing a big real estate company, they’ll be better represented. The big companies that signify both tenants and landlords will claim that they know all the perspectives. While this is true, the truth is that their reliabilities always lie with the owners. When it comes down to it, a large firm will take the side of the landlord over the tenant.
10. TENANTS BECOME IMPATIENT
Tenants radically misjudge how long it takes to either renew a lease or to move. It is according to how much space you have and how complicated your business is, it could easily take 4-8 months to crack your deal – maybe more than that if you’re really big.
In short, when you want a deal, go in peacefully, and get the best provision. You don't have to make these enormous blunders. Instead, you can get a rent agreement that maintains your company's good health. Always refer a licensed attorney in the suitable jurisdiction before taking any path of action that may disturb your legal privileges.