Negotiating a Office Lease

Reading time: 3 – 5 minutes

Now that your business is moving out of the two bedroom apartment I talked about earlier you think it’s time to get a office. Well most people think they are signing their life away or that the landlord sets the terms but that’s all a mistake. You as the lessee have the right to tell and negotiate the terms you find favorable. Most landlords want 1 year leases but if you want it for 3 months 2 hours and 1 second after the moon is full YOU CAN!

Mistakes that people make when negotiating a lease:

• Thinking the lease has to be set in years, it doesn’t you can make it how short or long as you want. 19 months if you feel good about the number 19!
• Rolling all build out expense into the lease. The landlord should paint, carpet to your satisfaction and even make sure all functions of the office work before you take possession.

Your power over the lease:

• Draw a line through any item you don’t feel comfortable with and if they sign the lease then that line will not be enforced on the lease.  Example: If the tenant should leave early they will have to pay 12 months of the full lease. DRAW A LINE through it and put  2 months as this is customary for them finding a new person to lease the space.
• Limit the months to what you reasonably think you would like it to be. Most starter offices are just that starter offices so don’t sign a long term lease, instead DRAW A LINE through the duration and write in your own months.
• Get two weeks to set up your office for Free! Meaning tell them you want to move your stuff in before the lease starts so the day you move in your lease starts and your company starts.  Make sure they do this for free instead of trying to add it onto your lease and prorate you two weeks.
• Make sure all heating, cooling and even electricity are all rolled into the lease price.  This is not like renting a apartment the building should pay for this stuff automatically.

Other things you need to know when negotiating a office lease.

• Insurance – most landlords will want you to get insurance protecting their property. It’s relatively cheap to get just look up insurance in a phone book. But, sometimes the landlords ask for outrageous coverage so you can NEGOTIATE that after talking to your insurance company.
• Hours of Operation – Most landlords will only supply heating or cooling during regular office hours. Some may even charge you if you stay late and use the system. So check into what their operation hours are.
• Security – Some spaces will have a security guard escort you to your car (Ladies). Check to see if that service is included.
• Office Mover Insurance – Some buildings require movers to have insurance to make sure they are covered if they scratch the marble. Check into this when you move in as you might be moving all this stuff yourself and have to talk to the landlord about giving you a pass to get your stuff in.

I know it seems like I wrote a lot but it’s all a one hour event if you got your checklist out. Don’t be scared to take control and exercise your POWER over the lease instead of getting dicked and ending up with a lease that punishes you. All leases are negotiable it’s just most people feel since it’s a office space they have to accept what’s given. NO You Don’t!

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