Are you looking to lease commercial property in Tulsa, Oklahoma? If so, it’s important to be aware of some common mistakes that tenants often make when entering into a leasing agreement. These mistakes can not only lead to financial losses but also create unnecessary complications for both the tenant and the landlord.
As a leading commercial real estate company in Tulsa, Oklahoma, Daniels Greer is committed to helping our clients navigate their leasing agreements successfully. In this article, we will discuss ten common mistakes that tenants should avoid when leasing commercial property.
Leasing commercial property offers numerous benefits to businesses of all sizes. From cost savings to flexibility, here are just a few reasons why leasing may be the best option for your company:
• Lower upfront costs: When you lease a commercial property, you typically only have to pay a security deposit and the first month’s rent. This can save your business thousands of dollars compared to purchasing a property.
• Flexible terms: One of the biggest advantages of leasing commercial property is the flexibility it provides. Unlike buying, you are not tied down to a long-term commitment and can easily relocate or expand your business as needed. This is especially beneficial for growing businesses that may need to change locations or scale up in the future.
• Access to prime locations: By leasing, businesses can gain access to prime locations that may not be available for purchase. This allows them to establish themselves in desirable areas and attract more customers.
• Less maintenance responsibilities: When you lease a commercial property, the responsibility of maintenance and repairs falls on the landlord or property management company. This frees up business owners from having to deal with these issues and allows them to focus on running their business.
• Tax benefits: Lease payments are tax deductible, providing businesses with a financial benefit that can help improve their bottom line.
Avoiding Common Mistakes in Commercial Property Leasing
While leasing commercial property may seem like an attractive option, it’s essential to be aware of common mistakes that can lead to costly consequences. Here are 10 mistakes to avoid when leasing commercial property:
1. Not Understanding the Lease Terms
Leasing agreements can be complex and overwhelming, especially for those who are new to commercial property leasing. It’s crucial to take your time and thoroughly read and understand all the terms of the lease before signing it. Pay attention to details such as rent increases, length of the lease, renewal options, maintenance responsibilities, and any other clauses that may impact your tenancy. If there is anything that you don’t understand or agree with, seek clarification from the landlord or a legal professional before signing.
2. Not Considering All Costs
The cost of leasing commercial property goes beyond just the rent amount. Tenants often make the mistake of not considering additional costs such as utilities, maintenance fees, insurance, and taxes. It’s important to have a clear understanding of all the expenses associated with the property before committing to a lease. This will help you budget accordingly and avoid any unexpected costs down the line.
3. Neglecting Due Diligence
Before entering into a leasing agreement, it’s essential to conduct proper due diligence on the property and its location. Research factors such as market trends, demographics, competition in the area, and future development plans that may affect your business. Not doing so can lead to unexpected challenges or missed opportunities for your business.
4. Not Negotiating
Leasing agreements are not set in stone, and there is always room for negotiation. Many tenants make the mistake of accepting the terms presented without seeking any changes or concessions. It’s important to advocate for yourself and negotiate terms that are favorable to your business, such as rent amounts, lease length, or maintenance responsibilities.
5. Not Seeking Professional Help
Commercial property leasing can be a complex process, and it’s essential to seek professional help when needed. Whether it’s hiring a real estate agent or consulting with a lawyer, having an expert on your side can help you navigate the process more effectively and avoid any potential legal issues down the line.
6. Not Communicating Clearly
Effective communication is crucial in any business relationship, including a leasing agreement. Many tenants make the mistake of not clearly communicating their needs and expectations with the landlord. This can lead to misunderstandings or conflicts down the line. It’s important to establish open and clear communication from the beginning to ensure a successful tenancy.
7. Not Understanding Maintenance Responsibilities
Maintenance responsibilities should be clearly outlined in the leasing agreement. However, many tenants overlook this aspect and assume that all maintenance will be taken care of by the landlord. It’s essential to understand your responsibilities when it comes to maintaining the property, especially if it involves expenses on your end.
8. Not Reviewing the Property Condition
Before signing a lease, it’s important to thoroughly review the property’s condition and document any existing damages or issues. This will not only protect you from being held responsible for those damages but also ensure that the landlord addresses them before you move in.
9. Not Considering Future Growth
When leasing commercial property, it’s essential to consider your future growth plans. Will the space accommodate your business needs as it grows? Is there room for expansion? It’s crucial to think long-term and choose a property that can support your business’s growth potential.
10. Rushing into a Decision
Making hasty decisions when leasing commercial property can lead to regrettable outcomes. It’s crucial to take your time, do your research, and carefully consider all factors before committing to a leasing agreement. Rushing into a decision can result in costly mistakes or an unfavorable tenancy.
Don’t fall victim to these common mistakes when leasing commercial property in Tulsa, Oklahoma. By understanding and avoiding them, you can secure a successful and beneficial leasing agreement for both yourself and the landlord. At Daniels Greer Commercial Real Estate, we are committed to helping our clients make well-informed decisions that lead to long-term success. Contact us today at (918) 740-1015 for all your commercial real estate needs!