Common Mistakes By Tenant When Renting An Office
If you are planning to take an office on rent, then you owe it to yourself to ensure that the entire renting process flows smoothly. Many tenants discover after renting an office that they have got into a bad deal: not only have they compromised on quality, they are also paying a higher than the normal market rent. Not being happy and satisfied with the new office premises can affect the business activities adversely. Here then is an overview of common mistakes that tenants must not commit while taking an office on rent:
1. Lack of planning: Most businessmen do not plan their office they just go ahead and choose a location and rent a space that catches their fancy. Nothing can be more disastrous. Before renting an office, you must be clear about the preferred location, office space area, and the number of rooms required for your business activities. When you are inspecting an office for rent, don't forget to check things like access to ample parking space and the existing security measures in the building.
2. Appointing a broker: Many a people want to save on brokerage and prefer to work on their own or through friends, rather than hiring the services of a professional real estate broker, just because they want to save a few bucks. Now, brokers being experts in the real estate field can in no time figure out the positives and the negatives of a property. So, it is better to spend a few bucks extra on hiring the services of a professional broker rather than waste your own time and end up renting an office that you would want to change after a few months.
3. Inspection of office and its documents: Before taking an office on rent, a tenant must inspect the office thoroughly for any wear and tear problems. The ownership documents need to be vetted too. It must also be ensured that the place is allowed to be used for commercial purposes, and that it conforms to various safety codes and is built in accordance with the prevailing rules and regulations. You have to build in a clause in the lease agreement making your office's landlord guarantee you on the aforesaid conditions.
4. Rent and security deposit: Before agreeing to the monthly rental, many people do not benchmark similar properties, and end up paying rent through their nose. It is important to compare similar office properties and find out the going market rent in that area before entering into negotiations with the owner. The security deposit must also be based on demand, supply and the regular market norms. However, if the owner of the office space seems to be in a tearing hurry to rent out his place, you can always negotiate with him and save yourself some money.
5. The lease terms: A tenant must read the lease terms carefully. See if you are comfortable with the notice period. The owner has to give a guarantee that you will enjoy peaceful possession of the property and that you will be able to carry on with your business smoothly. Any disturbance/damages arising because of the office premises will have to be compensated by the owner. If you feel your business will outgrow your current operations, then you have to insert a sub-let clause, just in case you have to move into a bigger office.
These are some common mistakes that many tenants make while taking an office on rent. You don't be one of them just be cautious, use our article as a guide, and go about taking your preferred office on rent. Good luck.
1. Lack of planning: Most businessmen do not plan their office they just go ahead and choose a location and rent a space that catches their fancy. Nothing can be more disastrous. Before renting an office, you must be clear about the preferred location, office space area, and the number of rooms required for your business activities. When you are inspecting an office for rent, don't forget to check things like access to ample parking space and the existing security measures in the building.
2. Appointing a broker: Many a people want to save on brokerage and prefer to work on their own or through friends, rather than hiring the services of a professional real estate broker, just because they want to save a few bucks. Now, brokers being experts in the real estate field can in no time figure out the positives and the negatives of a property. So, it is better to spend a few bucks extra on hiring the services of a professional broker rather than waste your own time and end up renting an office that you would want to change after a few months.
3. Inspection of office and its documents: Before taking an office on rent, a tenant must inspect the office thoroughly for any wear and tear problems. The ownership documents need to be vetted too. It must also be ensured that the place is allowed to be used for commercial purposes, and that it conforms to various safety codes and is built in accordance with the prevailing rules and regulations. You have to build in a clause in the lease agreement making your office's landlord guarantee you on the aforesaid conditions.
4. Rent and security deposit: Before agreeing to the monthly rental, many people do not benchmark similar properties, and end up paying rent through their nose. It is important to compare similar office properties and find out the going market rent in that area before entering into negotiations with the owner. The security deposit must also be based on demand, supply and the regular market norms. However, if the owner of the office space seems to be in a tearing hurry to rent out his place, you can always negotiate with him and save yourself some money.
5. The lease terms: A tenant must read the lease terms carefully. See if you are comfortable with the notice period. The owner has to give a guarantee that you will enjoy peaceful possession of the property and that you will be able to carry on with your business smoothly. Any disturbance/damages arising because of the office premises will have to be compensated by the owner. If you feel your business will outgrow your current operations, then you have to insert a sub-let clause, just in case you have to move into a bigger office.
These are some common mistakes that many tenants make while taking an office on rent. You don't be one of them just be cautious, use our article as a guide, and go about taking your preferred office on rent. Good luck.
