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Document everything in writing. Keep a written record of everything that is agreed on, and be careful to use the right terms in the agreement. Consult an attorney. Use separate agreements. Keep the term short. Take a security deposit. Pay like an owner. Factor in repair costs. Don't give large rent credits.
Take your time. Engage an experienced commercial Real Estate Agent. The rules are different for business rentals. Negotiate, negotiate, negotiate. Do your homework. Talk to your lawyer before you sign anything. Get a professional assessment. Make sure you get exclusivity for your building or complex.
Of course, most landlords prefer that commercial tenants sign long-term leases (5, 10 years or longer). However, in return, you should ask for certain items in relation to the length of the lease, such as free rent for a period of time and/or a tenant fit-up at the landlord's expense.
Usually between 3 and 5 years in length, standard term leases are a compromise in flexibility and predictability between their short and long-term counterparts. However, unlike the narrow scope of negotiated lease terms in shorter contracts, tenants that elect standard leases at least have some perks available to them.
How Long Should the Leasing Process Take? From listing your property, signing your lease, to having your new tenants move in, the whole process should take 60 days. In the first 30 days, you should: List your property online.
0:20 40:29 Suggested clip Commercial Real Estate Comparative Lease Analysis Video Tutorial YouTubeStart of suggested client of suggested clip Commercial Real Estate Comparative Lease Analysis Video Tutorial
In most cases, landlords have a wide variety of variables they consider when deciding whether to accept a lease. This can include everything from reviewing tax returns, to background checks, to credit reports, to checking references or even just connecting well personally with the prospective tenant.
Avoid risking your personal assets, such as savings accounts and property, simply to convince a landlord of your company's solvency. Many commercial landlords require personal guarantees as a matter of course. Even large landlords might be willing to negotiate if tenants are able to allay their fears of default.
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