As a business owner, your number one priority is running your business. Whether you sell goods or provide a service, that is and ought to be your primary focus. However, as a business owner, you also know that there are things that you need to handle or that require your attention that you would rather not have to deal with. One of the tasks that many business owners tend to dread is their commercial lease renewal. Owners often find this task daunting because they want to keep their business at the same location so feel like there only choice is to agree to the terms presented.
Which is why some owners never even try to negotiate the terms of the lease. They simply go into the process thinking that the lease agreement is mostly boilerplate and is a take it or leave it type of deal. The truth is nothing could be further from the truth! Before you sign your next commercial lease review this list of the common errors owners make when it comes to renewing a commercial lease:
- Not taking into account miscellaneous fees. While your monthly rent is a nice fixed amount, there may be variable fees lurking within the agreement. Some of these fees are quite common, such as CAM or common area maintenance fees, but it is important to have an understanding of how much these fees could amount to so you have an estimate of much you can expect to pay in addition to your rent each month.
- Relying on oral promises. You probably have heard that “an oral contract is worth the paper that it is written on.” While that statement may not be true in all cases, it is worth keeping in mind when negotiating a commercial lease. Often lease agreements contain language that specifically prohibits oral conditions or changes, or that contains language that all terms are contained in the agreement. To protect yourself and your business, do not rely on oral promises when it comes to lease terms. If a term is important to you, then it must be contained in the lease agreement.
- Failing to notice missing key terms. Sometimes an agreement can look pretty good if you only read what is written on the paper. However, sometimes, the devil lies in what is missing from the agreement. A prime example is signing a lease that does not contain a renewal clause. You do not want the surprise of realizing within months of your lease expiring that you may have to relocate your business.
- Not fully understanding all agreement terms. Too often non-attorneys approach legal language like it is a foreign language and attempt only to gather a general overview rather than a complete understanding of what is written. When reviewing a legal agreement, like a lease, it is critical that you fully understand each set of terms. Do not sign an agreement where you are fuzzy on what something means. If you have questions or concerns regarding the lease terms, speak with your business attorney before signing.
- Failing to negotiate. If your landlord wants you to sign a long lease, and you know that is problematic, do not simply agree, negotiate. Just because the landlord would like for you to sign a lengthy lease term does not mean the landlord is unwilling to negotiate this term.
If you are a business owner looking for the right attorney to protect your business, the attorneys at Hubbard & Kurtz, L.L.P. can help. At Hubbard & Kurtz, L.L.P. our seasoned team of business attorneys will sit down with you and review your business’s needs. Our attorneys understand that your business is unique and as such, requires specially tailored solutions. To schedule an initial consultation with one of our experienced Kansas City Business Attorneys, contact Hubbard & Kurtz, L.L.P. today at (816) 472-4673. At Hubbard & Kurtz, L.L.P, we understand the needs of business.