Are you looking to open a new office? You may have searched Honolulu for the perfect space, and when you found it, you got excited to get into it and start working. That excitement may serve you as you begin putting in the hard work it will take to make your business a success, but when it comes to signing a commercial lease, it could cost you.
Rushing through the leasing process could ultimately cause problems. Your lease is more than likely much more than just how much the rent will be. Without a clear understanding of all of the provisions of the lease, going too fast could come back to haunt you. For instance, many people make the following mistakes when entering into a commercial lease.
Signing a boiler plate agreement
More than likely, your potential landlord handed you a boiler plate lease agreement that "everyone" signs. These documents often heavily favor the landlord, which means that you could be saddled with most of the financial responsibility for the space, including any damage done to it.
Failing to see a pre-existing condition clause
A pre-existing condition clause means that you will be responsible for restoring the space to the condition it was in when you rented it. If you make significant changes to the space to suit your needs, you could face a hefty bill in order to return it to that condition if you move out of it.
Missing language about rate increases
Your landlord could have the right to raise certain costs included in your lease during its term. Those increases could come as a surprise and in substantial amounts. Is this potential clear in your lease?
Entering negotiations without assistance
You may realize that you have the right to negotiate better terms for yourself when it comes to your lease agreement. However, do you know what those better terms should be? Simply negotiating a better rental price may not be enough. You would benefit from reviewing all of the terms of the lease to determine whether they will serve you during your time in the space. Without the appropriate advice and assistance, you may not end up with the best deal possible.
You may think you are saving money by attempting to negotiate your commercial lease on your own. However, the money you may save up front could turn into a significant loss if you end up in a dispute with your landlord or something goes wrong in the space. With all of the potential obstacles to the success of your business, your lease shouldn't be one of them.