It is a great day when you realize that your business has succeeded and grown to such an extent that you need to lease a new building to bring your company to the next level. However, you should know that there is more to the process than just finding a spot and calling it your own, and we are here to help. As a Reno commercial real estate agent, Evan Meyer has helped many entrepreneurs find their new buildings and help them to navigate the process, so we have some tips for you to consider if you are thinking about leasing your own property.
The first thing that you need to know before starting the process is that you have numerous options to consider, and it isn’t quite as straightforward as it may seem. For instance, there are many different leasing types that you may encounter. A full-service lease is usually the easiest, and it means that you pay the landlord for just about everything, including the taxes, and they take care of the rest. If you go for a triple-net lease, then you still pay rent and also the property expenses, so it can be a bit more costly. You may also encounter a modified gross lease, which is a combination of the two. Do your research or get in contact with a Reno commercial real estate agent before moving forward.
Before you sign on the dotted line, you will likely need to have several conversations with the landlord as you ask about every minute detail. Some of the more important questions that you should ask include how many years you have on the lease, if the rent will increase each year or if you have a locked rate, and what other services are included in the lease, such as repairs and janitorial work.
There are other questions that may not be directly tied to the lease, but you will still want to ask. For instance, you should ask how safe the neighborhood is during the day and at night. If they hesitate before giving you an answer then you may want to continue your search. You should also inquire about parking. Is it easy enough for cars to park? Knowing the answer could determine how many customers you could see each day. Think about everything that helps your business thrive, and ask questions to ensure that this is the right space.
Since obtaining a commercial lease is a major deal, your potential landlord may ask you for extensive documentation about your business and your finances, so you should be prepared to provide what they need. For instance, you will need to prove that you can afford the cost of the building and the monthly payments. To prove that, you’ll want to show your tax statements and current bank statements that show how much money you make and what is left over after your other expenses.
Because this is such a huge endeavor, most landlords will need you to make a major financial commitment. In many cases, you may be asked to show that you have at least six months worth of rent money saved up. If you don’t, the deal may be off before it starts.
If you look at your finances and determine that you barely have any cash left over after paying rent each month, then you may need to reconsider, as there are many miscellaneous expenses that you may also need to pay. For instance, you may be on the hook to pay a security deposit, you might be responsible for maintenance, and there may be costly late fees if you can’t pay on time. Keep in mind that everything is often negotiable, including the cost of rent, so work with the landlord to get the best deal. If you need help, then seek professional representation. A Reno commercial real estate agent can help.
As you can see, there is a lot that goes into leasing a property, but by understanding the terms, carefully reviewing your finances, and asking important questions, you can make the best decision for your business. If you would like to learn more about the services offered by Evan Meyer, then contact us at Evan.Meyer@Kidder.com.
