When you sign a commercial lease you are making a big commitment. You don't want to rush into anything. At the same time, you don't want to be so scared that you neglect to move forward at the right time.
Below are five mistakes that have sunk many owners in the past:
-- Opting for a long term lease. This may help you get the best deal, but remember one thing: You never know what is going to change.
-- Negotiating when you are in a rush. Maybe your lease at another location expired. Maybe you are in a hurry because you just hired a new batch of employees. Even so, you don't want to get ahead of yourself. This can lead to a poor decision.
-- No out clauses. You want to make sure you can get out of your lease if the time comes, within reason, of course. For example, you may have an out clause if your business files for bankruptcy.
-- Listening to everything the landlord says. You must verify every last detail, ensuring that you know exactly what you are getting. Remember, the job of the landlord is to find a tenant. For this reason, he or she may not be 100 percent honest.
-- Rejecting an offer when it makes sense. There is nothing wrong with driving a hard bargain, but you have to be fair at the same time.
When you make one or more of these mistakes, you may miss out on the opportunity to close a deal on the right property. Worse yet, you may sign a lease that does not make sense for your business.
Source: The Huffington Post, "Eight Big Mistakes to Avoid When Negotiating a Lease for Your Business," accessed Aug. 12, 2015