When you decide to sign a lease for an office, you might think it similar to renting an apartment or signing a simple rental contract. But the reality is that leasing a business location can actually be very complicated and if it is not done right, it can lead to a very costly and complicated situation.
It’s important that you take your time and figure out the right way to go about lease negotiation.
Different types of leases
It is important to understand the different types of leases when starting the process. In a single new lease, the landlord has the responsibility for paying insurance, maintenance and any repairs that need to be done. However, double net leases, often referred to as net-net leases, mean that the tenant is actually responsible for insurance, taxes in regard to the property, and utilities, while the landlord must still maintain the property. Triple net leases mean that the tenant is essentially responsible for everything apart from repairs to the structure of the building.
Looking into the details
Although the above are the main types of leases that are available, the most essential aspect is to look into the minute details of the lease contract itself, since this is where problems can arise. The contract should have written in a solution for any unforeseeable circumstances so that conflicts do not arise later on. If you encounter any problems in a lease or have concerns about the terms, it is vital that you conduct research before you sign, so you know what you are getting yourself into.
Source: Forbes, “Negotiating A Commercial Lease? Here’s What You Need To Know,” Clint Gharib, accessed Dec. 01, 2017