4 Common Mistakes Tenants Make While Leasing Office Space

We are humans and we tend to make mistakes! Sometimes the mistakes you make can cost you a lot. Especially, when it comes to real estate business, even a small mistake can cost you a lot together. Here we have listed 4 common mistakes that the tenants make while renting or leasing an office space, taking care of which avoids you from falling into a ditch. 1. Proceeding without Planning These days, everything is on a faster note and the tenants are jumping into the market without having a proper plan. They aren’t even clear on what exactly they need! They just know that they need an office space and nothing other than that. Isn’t it witless when you are looking for a 10,000 sq. ft. space when you actually need 12,000 to accommodate your employees ? Consider having an architect who can design a space program to help you figure out the space required. Also think if you want extra electricity to your place or the special telecom needs? Knowing these things in detail can save your money, time and the aggravation down the road. 2. Not Having Tenant Representative Nothing can be better than hiring a tenant representative to be on your side! He can understand the in-and-out of the market better and can negotiate on behalf of you. The best advantage of having a tenant representative is that, he can narrow down the buildings that suit the best for your business type. A tenant representative’s advices and know-how’s are indispensible; they can prevent you from landing into the space that you would want to leave after a few months. Most of the tenants hire a lawyer as their representative; this will not help! Consider hiring the one who’s got some knowledge about the industry. 3. Inadequate Document Inspection Leasing an office space is not really an easy task; it takes lot of paper work. The tenants have to be very careful on analysing and inspecting the documents which they sign on. It’s common that the landlords think about making as much money as legally possible on their property. Do you think that the long lease they offer is designed to be fair? Not really! It’s explicitly designed to make more money. Before signing any document, make sure that the office space is legally zoned for commercial purpose. Also check if the documents are proper (abiding to the law). 4. Rent and Security Deposit Many tenants do this common mistake of not benchmarking the similar properties and comparing the rent and security deposit. Before agreeing to pay certain amount as the rent, make sure you have compared the price to the similar office spaces in that area. It’s not just the rent you need to be careful about, but also the security deposit. It must also be based on the demand, supply and the market norms. If the owner seems to be in a hurry to rent or lease out his space, you will be in the upper hand and you have all the rights to negotiate and save yourself some money. Along with the above mentioned scenarios, the tenants must also read the lease terms and understand it carefully. Check for the notice period and think if it’s fine for you. Sometimes, the terms may also state that the landlord has the right to relocate you to some other floor in the same building and the time they give you is just one month! Will you be able to pack all your things by then and get ready to move to another location in one month? Probably not! So read the lease terms properly and then sign the document. http://www.fortuneprops.com/