Office rent is probably one thing that you spend the most. However, this is important most especially if you are just starting with your own business and cannot afford to buy your own place yet. With this, many tenants tend to become passive when it comes to the leasing agreement. They do not review the contract as much because what they have in mind is that they need to get a place for their business.

Not reviewing your contract closely is one mistake that you should avoid. Why? Well, many proprietors out there take for granted of your passiveness and cluelessness. They include list of other things in the contract that you will only notice when you have already signed it. Well, do not be fooled and understand some of the most common hidden costs that you should avoid when leasing:

1. Excessive upgrades and maintenance cost – Most tenants thought that the building owners shoulder lots of maintenance cost but they will be just stunned to learn that the maintenance cost that they are paying every month does not cover fixing pipes problems, snow and trash removal and so on and so forth. Make sure to ask the owner about the coverage of the maintenance fee included in the contract to know your rights too.

2. Unfair end-of-term agreements – Sometimes, building owners will threaten you out of nowhere to end your lease term most especially if they know that you are becoming comfortable and profitable at your place. They will mention that you are breaking the agreement by renovating this part or adding some things. Afterwards, they will ask you to pay extra amount of money to renew the lease contract. To avoid this, you must be clear with your end of term agreements with the owner. You should know about certain clause that will violate your lease contract so you could avoid them and be in good terms with the owner. This way, you know where you stand and what the boundaries are.

3. Unnecessary increase in operating expenses – You will commonly see operating expenses in the lease contract. Well, one can easily assume that this covers practically everything. However, you can be easily disappointed like when you see that the parking lot does not have enough good lighting or that you have to pay security guards extra money to do rounds every night when you actually thought these services are part of operating expenses that you are paying. To avoid this kind of disappointment, you must ask the building owners to specify every service that included in the operating expenses that you pay.

Yes, you truly need a good space that will help your business grow whether it is for commercial needs or office needs but make sure to be sensitive with the hidden costs that can vacuum lots of money from your bank account. You should be keen in reading the contract before signing the lease and be sure to negotiate well with the proprietor for better understanding and relationship.

Gary Meurer is a business writer who likes to share information on Manhattan office space and New York City office space as well as related office ideas.

Gary Meurer is a business writer who likes to share information on Manhattan office space and New York City office space as well as related office ideas.
http://www.virgobc.com
http://www.virgobc.com

Author Bio: Gary Meurer is a business writer who likes to share information on Manhattan office space and New York City office space as well as related office ideas.

Category: Real Estate
Keywords: lease contract,operating expenses,building owners,maintenance cost,lease term