If you’re like most commercial business owners, you rent the space that your office resides in. When it’s time to sign a new lease in Idaho, it’s best to understand how to properly negotiate. If you do it right, you can save your business a large amount of money in the process.
Pay close attention to the rental rate
When it comes to renting commercial property, leases are set up on one of two bases. The first is the cost of the entire facility, where you pay one rate for the entire building. The second is based on square footage; you get charged based on the square footage of the area that you’ll be running.
If you’ll be using a lease that is based on square footage, it’s important that you inspect the property to ensure that you’ll be able to use all the space that you’re getting charged for. Is there space that you can’t physically use? Ask the property owner to remove that from your rental lease.
Understand your renewal options
Most commercial leases last for years at a time. Unlike your traditional housing lease that lasts a year, rental leases will usually start at five years.
Do yourself a favor and understand what the procedure is once the lease expires. You want to ensure that you have the option to renew the lease when the expiration comes. This will set you up for the best chance of maintaining the facility in the event that you are not expanding when you reach the end of your lease term.
Negotiating your commercial rental lease is a great way to not only save your business money but also to ensure that you understand all aspects of the lease. It’s always advisable to have an attorney look over the lease to ensure that it is in your best interest before signing it.