Whether you are starting a company or you are expanding your current operations, you may want to lease office space. When you find the perfect office space to lease, there are a few things that you need to know about the commercial lease contract before you sign the agreement. If you can familiarize yourself with terms, rates, and other requirements now, you can minimize the chances of disagreements with your landlord as well as other problems later down the road.
Your Monthly Rental Rate May Not Include Operating Costs for the Property
As a general rule, there are a few different pricing structures that landlords use. There is the triple-net lease where tenants pay less in the base rent and cover any additional costs themselves. There is also the gross lease where the monthly rental rate includes the office space rental and building operating fees. Then, there is the modified gross lease where the tenant and landlord agree to split any maintenance expenses and the tenant pays a set monthly rental fee.
The Lease Should Contain Amendments Regarding Remodeling and Expansions
If you have intentions on expanding or remodeling the leased office space, it is crucial that these plans are discussed with your landlord. By doing so, the landlord can include amendments regarding these alterations within the lease agreement. The lease terms should clearly outline who will pay for updates as well as who will pay for the costs pertaining to the upkeep of the modifications of the office space for the duration of the lease.
The Lease May Require a Personal Guarantee
It isn't uncommon for businesses to need to break their lease early as a result of an increase or decrease in business. Depending on the situation, the business may need to shut down permanently or may just need to look for a larger space to house its operations. In order for landlords to protect their own interests, they may require that tenants provide some type of personal guarantee in their commercial lease agreements. In the event that a tenant is unable to pay the monthly rent, a guarantor will be financially responsible for covering any necessary expenses, such as the rent.
If you are looking for a commercial office space to lease for your business or if you would like to build an office space that suits your individual needs, contact office development services in your area today.