Attention Property Owners: Rent Your Commercial Property To Cut Down On Upfront Expenses

So you have decided to start a business of your own

. You have everything ready, potential clients are already calling you, you have accumulated the starting costs to launch your business and now youre looking for a place to set up shop. This is when a lot of things can go wrong and you might end up spending a lot on buying office space and be left with very little to invest in other aspects of your business and ultimately help foster more growth, faster.

The primary mistake that you can make is to buy your commercial property instead of leasing it. Your business is just starting and at this time you just need an office/workspace to start your operations. Buying commercial property is simply not feasible, and at least if its feasible, its not business smart. I have seen a few people who spend a lot on buying an office, furniture and renovations and end up with no money to invest in projects when the company becomes operational, and they are unable to pay their employees as well. As a result, the business goes belly-up in just a few months, which is especially sad because they had so much potential. When leasing a property bear these things in mind to cut down expenses and eliminate the hidden factors and surprises that can be a pain later.

Length of Lease

An important aspect to look at when negotiating a rental agreement on commercial property is the length of the lease. A short-term lease of a year or two can be beneficial if you don't want to commit to a long-term contract; however, on the flip side, a short-term lease will likely increase after the contract ends. If your business is successful, an increase in rent will obviously have a negative financial impact and could ultimately blunt your bottom-line for awhile. When negotiating the rental period, you should carefully consider how long you want to lease the property. Then you may want to negotiate ongoing terms.

For example, say you live in Orange County, California, and you agree to two years and also add to the contract that you have the option for five more years at the same or nearly the same rent. When the economy is doing well, you have less of a chance of negotiating terms such as this. Any lease that you sign should definitely be reviewed by an attorney or you should consult a property management company in Orange County, CA to help with it.

Business Size

A small business has traditionally been less attractive to commercial property owners. Property owners prefer a larger company to lease the property to because it adds some assurances that the building will remain leased for a longer time. However, as companies downsize and larger companies stop expanding, smaller businesses have a better opportunity to acquire a premier business spaces.

Going back to our previous example, utilizing property management services in Orange County, CA, can help small businesses find affordable office spaces and negotiate great lease contracts, regardless of size. Because property management companies know the landscape, have experience and carefully research the location you want, they will help you find a rental deal that will be very attractive.

Negotiate

When a commercial property owner gives you a price for rent, don't be afraid to negotiate, especially if the property has been empty for a time. If the property isn't rented, the owner isn't making any money and very likely has to make mortgage payments on the property. The monthly rental is not the only thing you should negotiate. Other ideas to consider are build-out costs, signage, parking, utilities such as water and garbage. You may be able to negotiate additional monthly savings and some perks that won't cost you any additional money, things that a commercial property management company can help you with.

Research

You will need to research many things before deciding which office space to rent. In particular, it is important to research the commercial property holder. You need to consider that the property owner may be facing financial hardships. You must verify that the property owner is making mortgage payments. Consider that you invest your money into a space; you make improvements, purchase everything you need and are ready to go only to have a bank foreclose on the property because the property owner is in default. At a minimum, you should run a credit check on the property owner to verify they are not in financial trouble.

The best bet would be to hire a property management company with experience in commercial, rental as well as residential property management to acquire and manage the premises for you while you perfect you plans for your business without getting into the property hunting hassle.

by: Rashin Amini

POST COMMENT

Commercial Moving Company Methods To Easily Sell Commercial Loan Note Attention Property Owners: Rent Your Commercial Property To Cut Down On Upfront Expenses Ending A Commercial Lease Why Emergency Lighting Is Essential For A Commercial Premises What Does A Commercial Architect Do? Distance M.com Master For The Commercial Advantage Constant Growing Values Of Commercial Property In Delhi Simple Tips For A Greener Commercial Facility How To Get Reliable Commercial Property To Rent Cape Town So Does Insulation Help To Make An Impact In Commercial Premises? Commercial Plumbing Detroit Choosing A Commercial Plumber How To Choose The Best High Pressure Washers For Commercial Cleaning