Don’t Make These Common Mistakes
Before signing a new lease, make sure you’ve negotiated for terms you’re happy with and that will protect you in case something happens.
Consider things like proper zoning, common area maintenance (CAM) fees, and clauses to keep you protected when something unexpected occurs. Here are some common mistakes renters make when signing a commercial lease.
Signing a long term medical office lease without negotiating any allowances
Landlords love it when renters sign a long-term lease because they don’t have to worry about getting it rented out again for that duration of time. They avoid costs like cleaning, advertising the space, and rent lost during new lease acquisition.
With that in mind, negotiate some perks in exchange for signing your long-term lease like free rent for a period of time while you get moved in or improvements to space at the landlord’s expense.
Relying on your landlord’s word only
While most landlords have the best of intentions, don’t rely on their word only. For example, they may indicate certain fees are included in your rent, but then you get a bill in the mail.
Make sure to get everything in writing so it’s clearly stated and there is no confusion if a dispute crops up. Pay attention to things like CAM fees, administration fees, or capital expenditures.
Using inexperienced tenant representatives
Just because you have representation doesn’t mean they know how to get the best deal for you. Inexperienced agents may help you through the terminology and contract terms but fall short of going the extra mile when it comes to pointing out certain conditions you haven’t thought about.
The biggest mistake we see is when a business hires a residential realtor to negotiate a commercial lease. That’s like hiring a mechanic to do open-heart surgery.
Find an agent who has helped others through a similar process with valid testimonials about their proven track record for handling commercial leases.
An oversight in signing the lease could come back to bite you years later.
Forgetting to include a clause to get out of the contract
Anytime you are in business, unforeseen circumstances may pop up. Maybe you’ve found another location, want to expand or downsize your practice, or merge with another business. What are your options when it comes to terminating a lease early?
Make sure your contract includes a clause about subleasing or an option to sell in the future. Oftentimes, a landlord may have the right to terminate your lease if you ask to sell or reassign your business. A decent portion of the sale price can come from the prime location, so check the fine print and make sure it’s on your side.
Negotiating out of emotion
When it comes to business, leave the emotions out of it. You may come across a location and get attached to it before the lease is signed. Avoid thinking that your medical practice’s success depends on a certain location as it can lead you to accept terms that aren’t the best.
On another note, you may want to get your practice up and running as soon as possible. Avoid negotiating terms too quickly because you feel pressured to find a space as soon as possible. This type of thinking can lead you to agree to terms you don’t fully understand or aren’t comfortable with.
Whether you choose to have representation or not when searching for a lease is up to you. But remember, an experienced commercial real estate agent can help you navigate the legal jargon so you know exactly what you’re signing up for. Having an expert on your side also means they can negotiate on your behalf.
Commercial Lease Locators has the experience you want representing you when you’re in the market for a new medical office. Here’s how to get in touch with them.
Secure the Perfect Doctor’s Office
Finding the ideal location for your medical office has never been easier. With the help of Commercial Lease Locators, we can guide you through the process from start to finish and answer all your questions.
Contact us through the easy online form below or call 512-920-6270 to speak to an experienced commercial real estate agent today.
Tell us the type of space you’re looking for, the size and the ideal location to get started.
All our agents have the experience it takes to negotiate excellent terms and conditions for a lease that will work for your medical practice.
Contact Commercial Lease Locators and let us negotiate the best deal on your behalf!
Hire the best commercial tenant rep to find your medical office building
If you’re looking for additional resources for your medical practice then take a look at the Texas Medical Association. They have a great resource page!