Mistakes are form of human nature, But when companies make mistake while leasing office spaces, they have to pay heavy for it. Know about 5 most common mistakes made by tenants while renting office spaces and know how to avoid committing them.
1. Not planning the superficial design of your new office before leasing
It is very important to have a clear perception of what is exactly required. If your plan demands you to rent twelve thousand square feet, it is useless to look around properties measuring ten thousand square feet, even at profitable deals. Besides, the floor load capacity is also to be determined earlier. If not, then this will make you incur more expenses afterwards.
Smart Tip: Count on an architect to design a space plan and figure out how much space you require. There are various commercial consultancy companies who offer integrated services related to property management, including space program. One can hire us to get all under one roof.
2. Not inspecting and understanding the documents.
There are various legal papers need to be made and clarified like tax calculations, restrictions and rules related to parking, signage requirement, renewal or extension of the contract period, built out allowance, work letter and many more. All these documents need to be speculated and investigated minutely before finalizing the deal.
Smart Tip: If you are novice in this arena it is better to get assistance from a commercial property broker who have vast know how in dealing properties. They will make you understand the legal issues and documents clearly and close the deal swiftly.
3. Miscalculation of expenses.
Calculating the total costs is a daunting task. There are instances where renter undergoes huge extra charges, other than what was calculated. The types of expenses that companies miscalculate are:
• Insurance of the building
• Maintenance charges inclusive of HVAC, lighting and other infrastructure
• Real estate taxes
• Association fees charged by the community
Smart Tip : Tenants must look back into the past to speculate if these charges were present in the last two year or at least the previous year.
4. Not having a proper tenant representation
Without a good tenant representation you will fall into traps and scams or you may be misguided to rent such places where you will end up with losses and huge expenditures.
Smart Tip: There is nothing better than hiring a professional property dealer or attorney who will figure out your requirement, provide you multiple options, negotiate for you and give you maximum return on investment.
5. Not comparing charges of rent and security deposits.
This mistake is common in case of any big purchase. Impulsive buying is not at all recommended in case of commercial property buying or leasing. You should read compare and understand other offers present in the market.
Smart Tip: A broker will provide you various offers beside his listings to give the best deal in terms of price and quality.