As people prepare to grow their business, they may need a larger building. There are a few things business owners should consider before they sign a new commercial lease.
As people prepare to sign their lease, they should make sure they do research on their new landlord. According to Business News Daily, many commercial leases run for three to five years. Because people will work with their landlord for an extended amount of time, they should make sure this person will be good to work with. They should also ask whether the landlord owns the building or serves as a go-between for the owner and the tenants. Understanding these details can help people determine if the building is right for them.
Is the space right for the company?
Many people may focus on the rent and location of a building. According to Forbes, business owners should also consider how they plan to use the space. Does a building have enough office space so people can hire more employees as the business continues to grow? Will the company be able to expand into an adjoining space if necessary? Before signing the lease, people should carefully evaluate their business goals. This can help ensure that people lease a space that will be a good home for their business for several years.
What is the actual cost of the space?
Some leases may contain hidden fees. These may include some of the following expenses:
- Management fees
Additionally, some leases may include a clause allowing the rent to increase each year. Some tenants may also be responsible for repairs and maintenance to their space. These extra expenses may be unmanageable for some business owners. People should make sure they see a full breakdown of the fees and estimate the cost of potential repairs before they sign the lease. This can help them make sure the building will be a good home for their business for the next few years.