How To Negotiate A Commercial Lease

Negotiating a commercial lease takes a lot more work than negotiating a lease for a residential property. There are many clauses, escalators and other fine print that you have to comb through to ensure that you are getting the best possible deal. What tactics should you use in the negotiating process to ensure that you are getting a good deal?

 

 

 

Get A Competent Commercial Lease Broker

When you are looking to rent commercial office space, you should always negotiate with the assistance of a commercial real estate broker. This person will help you find a good location as well as help you determine how much you an afford to pay in rent. Scheduling an appointment at your broker’s office can be beneficial. If you don’t want or cannot afford a typical office space, you can see MORE office types here or visit MalaysianToday.com.

 

How Much Can You Afford To Pay In Rent?

The rule of thumb is that you don’t pay more than 10 percent of your gross sales in rent. If you are making $100,000 in sales per month, you can afford to pay up to $10,000 a month in rent. Business owners looking to rent commercial property should know that rent is often calculated per square foot and presented as an annual figure. This means that your landlord will most likely tell you that the rent is $50 a square foot per month and costs $50,000 a year to rent.

 

Protect Your Investment

Many business owners rent space in an area that they think will draw the most traffic. Typically, you want to set up in an area that is already being used by a big company. For example, a business may want to set up shop in an area that has a large grocery store or other retailer in the area. However, if that retailer leaves, your foot traffic could decline as well. For that reason, make sure that you have a clause in your lease that lowers your monthly rent or allows you to leave the location before the end of your lease.

 

Don’t Become Emotionally Attached To A Property

Your broker and your potential landlord will spend weeks negotiating the terms of your lease. Therefore, you should stay calm and collected throughout the negotiating process. If you seem too eager, your landlord won’t be willing to give you a deal that is more to your liking.

 

Hire Legal Representation

The final step in the process is to hire an attorney who will review the lease before it is officially signed. Your lawyer will go over the entire document to ensure that it is worded exactly how you want it to be. If your legal counsel raises concerns about the deal, make sure that you listen carefully.

Negotiating a commercial lease takes a lot of time and effort. With so much money riding on your lease, make sure that you cover ever detail before signing it. A bad lease could doom your business to failure.

 

Serviced Offices Provide Simple Business Solutions

Whether you are just starting out as a small business owner or work for yourself and need extra office space, a serviced office can be exactly what you need. A serviced office will provide you with the extra space you need to conduct your business affairs in a professional manner. A serviced office contains each of the office necessities you will need for running your office space, and these offices even offer perks like an answering service and access to office equipment. What’s even better is serviced offices are cost effective. If you live in Kuala Lumpur, there are serviced offices in Kuala Lumpur that can help your business.

 

When you choose to rent a serviced office for your business venture, you are choosing to rent your own private space that will help you handle your business uninterrupted (also see Negotiating The Most Out Of Office Rental Agreements). Whether you want to use it for a personal office free from the distractions of a home office or you need extra room for visitors or meetings in you small company, serviced offices provide valuable space for any business reason. What’s even better is a serviced office can be completely budget friendly. When extra space is needed for your home office or small business building, serviced offices can help.

 

 

Jakob + MacFarlane, Orange Cube Office Building, Lyon, France
Jakob + MacFarlane, Orange Cube Office Building, Lyon, France

 

 

A serviced office is a cost effective way to get the valuable space you need for your home office or business space. Serviced offices come a variety of office supplies like computers, televisions, communication devices, meeting essentials, and any type of office supplies that will contribute to the success of your business, and they also offer the convenience of tastefully decorated and modern office furniture. Whether you need extra office space for your small home office or your moderately sized business, serviced offices can help give you the business edge you need for the success of your company.

 

 

This modern and unique Vodafone Office is located in Oporto, Portugal.
This modern and unique Vodafone Office is located in Oporto, Portugal.

 

 

 

 

 

 

Leasing Property

For those that are really thinking about leasing their property, they need to make sure that they keep a few things in mind. Whether it is a bungalow or a condominium, one needs to really make sure that they are really able to lease it the way they want to. It can either be seen as a great investment, or a financial disaster, depending on the amount of time that one prepares ahead of time for this all. One will not want to buy property for sale or property for rent that is not well put together and organized, so home owners need to keep those tips in mind.

Whether it is a house for sale or house for rent that one is putting up on the market, one needs to know that this is a big bold step. It is a little bit different than actually just selling it out. One may want to rent it out instead, so they will need to take different steps. This is what one would see when they look at an apartment for sale, or an apartment for rent. There is a huge difference between the two. One needs to make sure that they are very temperament and able to receive calls at all types of times throughout the day, because people are going to be interested and they will have questions.

It is all about being honest and carefully considering all of the facts when one is thinking about leasing their own property. One is doing this on their own without the help of a real estate agent. There are also many different zoning laws in each area that people need to make sure that they are familiar with, if any. One shouldn’t assume that they can just automatically rent out their home or town home just because it is a good investment or they need the money. A lot of research is needed regarding taxes, local laws, neighborhood deed restrictions, and much more.

People need to also make sure that they have the necessary finances to pull off this type of investment as well, because it does actually take a lot. Money is tight, and one may need to consider being able to handle two mortgages, and even two different property taxes. When things break, since they almost always do, one needs to be able to take over the situation and handle it with their skills, abilities, and even time. They will need to be able to run over to the property and fix them. That is why it is a little different to rent out property than to sell it. Auction property is something else that should be considered but a lot of work needs to be invested into those as well. 

Responsibilities of a Landlord

A landlord is usually the owner of a property that is rented out to tenants. It could be a single storey home, an apartment block, bungalow, town house, penthouse suite. There are certain regulations and requirements that landlords have to fulfill on behalf of their clients. This makes them conform with the laws and statutory requirements in regards to responsibility to clients.

A landlord could have an apartment for rent or other property for rent. The best way that this property can be managed is by signing up with a professional property management firm. A property management firm is best positioned to manage the property for and on behalf of the landlord. They can handle all sorts of property such as a condominium, bungalow and any other house for rent.

A landlord is supposed to ensure that the house or property is in great physical condition with all the necessary amenities function and in good order. These include doors, plumbing, electric showers, wardrobes, kitchens and all other household amenities. There should be running water as well as electricity and gas. The house should contain basic furnishings such as floor tiles or wall to wall carpeting with ward robes in the rooms and cabinets in the kitchen and bathrooms.

The landlord has the responsibility to pay for rates on the land and other charges regarding the property. However, the tenants will have to pay for the energy bills and water consumptions as well as any other utility bills they incur. These are all aside form the rent which in turn has to be paid monthly.

Sometimes a landlord may wish to dispose of their property and sell it off. The best way to go about disposing an apartment for sale or other property for sale is to contact a real estate agent. Unlike a property manager that simply manages a property, a real estate agent is an experienced professional that can easily and speedily dispose of any property in their possession. This means that if a real estate agent had the authority to dispose of a property or auction property on the owner’s behalf, they would use all means at their disposal to sell the home to the highest bidder as soon as possible.

A landlord will, however, have to sign up to a sale agreement and provide their consent in the sale of this house by the real estate agent. The agent will in turn receive a percentage of the total sales for their commission. It is therefore a very important consideration that a landlord consults with a property manager if they wish to rent out their property or contact a real estate agent if they are looking to dispose of this property. Working with these professionals is a very wise idea.