For a successful businessman or landlord it is crucial to have some practical knowledge about market condition, Moxie of business and legal requirements. A very common area in which mostly business person makes mistakes is commercial leasing and therefore it is important to get information about leasing mistakes that are made by other business persons. Leasing is actually finding out a space or land for your business according to the needs and requirements. Top ten very frequent and common mistakes are as follows.
1) Prior to all is the lack of consultation. Usually people neglect the importance of a professional broker and then they face some legal hot issues because of the lack of information. A broker is too important because they are professionals and can provide you information regarding different landlords, market trends and the most important demographics with which you can save money and maximize your profit.
2) Space selection is another big blunder that is common in leasing. There are two main sorts of space the usable area and rental square feet. Usually people make wrong decisions as they are confused about the difference. The rental square feet are the overall area you have hired or purchased while the usable area is the area which you use only for your business. Rental area including hallways, bathrooms, balcony and main lobby and therefore your decision must be in accordance with theses things. Keep in mind that the usable area is just the area you will use for your office work. In this regard a 1 square foot is less than actual 1 square foot that is required for your business.
3) The lack of understanding of space leads to higher expenses as you don’t understand the difference of rental space and usable space and then you pay more than your usage.
4) Selection of a wrong location is another mistake. People usually not considering the accessibility, target market and closeness to the target market for their business and hence at the end some huge losses welcome them.
5) The ignorance of business future opportunities. Before going for leasing keep in mind after five years where you will see your business. In this way you will remain in a green zone with opportunities of business expansion.
6) The selection of wrong building with a lack of facilities that are crucial for your business. Before signing any leasing agreement ask and check all the things that are important for your business.
7) Signing of an inflexible leasing agreement. Never put yourself in hard rules and always try to keep an option with you and check for duration of agreement, cancellation and terms and conditions.
8) Not having the involvement of the insurance company of the person. Being a business owner you must send the copy of leasing agreement immediately to your insurance company for review.
9) A very lengthy market search. Usually people create problems for their self by not starting work immediately and at the end they have to face problems and they then compel to rent an expensive building.
10) Failure in hiring right legal consultants or professionals. Only experienced lawyers can cut down your expenses by negotiating for your interest with an understanding of your requirements. The fee they are charging is nothing in front of their priceless services.
You can check out this great Lease Agreement Template to start creating your very own agreement quickly.