For small businesses, renting commercial space is an affordable and efficient way to expand without assuming a lot of risks. Basically, a business owner can rent a certain amount of commercial space and grow his business without requiring a huge initial budget. Once the business and profits grows, the business owner can move to another commercial building which offers more space.
However, renting commercial space is not as easy as renting a residential property. There are many factors involved which need to be taken into consideration in order to make a great deal. If you don’t have a lot of experience when it comes to leasing commercial space, here are several important questions you need to ask before signing the contract.
Do I need to pay additional fees besides the rent?
In many cases, businessmen who rent commercial spaces also need to pay other fees. For example, there might be special taxes, load fees, CAM fees, property fees and so on. As stated earlier, renting commercial space is a little bit trickier and in order to simplify everything, the person who rents should identify each and every of these fees and write them down. Also, it is necessary to write down how much one should pay for each of these fees and how often he needs to pay them.
Are the terms of the rent negotiable or not?
This is also a very important question, especially if the rented commercial space is quite large. In most cases, negotiable terms include the rent, security deposits, if rent and other fees are increased every year and if so, by how much, the length of the rental period and so on. If these terms are negotiable then the person who rents commercial space will be able to make a better deal, especially if he gets help from a professional when negotiating. Additionally, it is worth taking into consideration the rent renewal options as well.
What services are included in the rent?
The rent is a certain sum of money a tenant pays the landlord for renting a particular commercial space. However, in some cases, various types of services might be included in the rent or they might need to be paid by the tenant. For example, when negotiating the terms of the lease, businessmen might want to ask if various taxes, utilities, security services, etc are included in the rent. If they are then the tenant will pay just a single sum of money on a regular basis and have more peace of mind. If they are not included then the tenant will need to pay them from his own pocket.
How much is the “base” rent?
The base rent actually refers to the rent paid for usable square footage. Commercial spaces, unlike residential properties, are usually evaluated by how many square feet can be used for various purposes. To the base rent can be added various other fees such as loads or CAM fees and together they will form the actual rent a tenant needs to pay on an ongoing basis.
The commercial space rented needs to be insured?
Some landlords want to have more peace of mind and they ask tenants to purchase insurance coverage before they hand the keys to their commercial spaces. Basically, a property insurance policy will protect the assets of the landlord and it will be added to the rent paid regularly by the tenant. Therefore, before signing the contract, one should ask if he needs to insure the rented space or not.
If the answer is yes, the next question is what type of insurance is necessary. It is a well-known fact that many businesses are underinsured and this can be detrimental for them in the long run. Additionally, it is worth asking if the insurance coverage needs to be in place before or after moving in the commercial space rented. Some landlords want the insurance coverage to be set prior they hand the keys to the tenants.
What types of improvements can be made in the rented space?
Many businessmen want to customize their commercial space according to their own preferences and needs. Although this is not a bad thing, it should be thoroughly discussed with the landlord before singing the lease contract. For example, the tenant should ask what types of improvements he is allowed to do, who will pay for them and if the landlord wishes to get his commercial space restored to its original design when the rental period expires.
These are just a few important questions that will help you close a better deal. If you need professional assistance or you want to browse a lot of commercial spaces which can be rented right away, contact our specialists and we will help you. We offer top quality guidance to our clients when it comes to buying or renting commercial spaces and our services are truly affordable.