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Don’t get surprised by commercial lease expenses

| Apr 14, 2016 | Commercial Real Estate |

If you are a small business owner in Florida, you probably already know that preparation often pays off. While you can’t predict every obstacle that will come your way, you can take steps to eliminate some of the unanticipated complications that can arise under certain circumstances.

For example, if you are looking to start, move or expand your business, you will want to be prepared for the financial obligations of signing a commercial lease. Some of the expenses you can plan for are obvious, like rent. Others may be more obscure and can present some serious concerns if you fail to take them into account. In this post, we will examine some of the surprising expenses that might come with signing a new commercial lease.

Broadly speaking, your expenses will be based on the type of lease you sign.

As examined more closely in this Forbes article, you as a tenant could be financially obligated to cover utilities, get insurance coverage and replace or repair appliances that break down. You might also learn that you have to pay for grounds keeping, taxes and incremental price increases over time.

Some people assume that a landlord will pay these expenses, and in some cases this can be true. Some lease agreements hold the landlord responsible for all these things. This could certainly be a pleasant surprise and ultimately free up some finances you had saved for commercial space, allowing you to use that money elsewhere.

In many cases, the landlord and tenant will split many of these expenses. The most common type of lease is one that holds the tenant financially responsible for rent and utilities. The landlord therefore agrees to cover other costs.

Because every lease is different, you need to be sure you are reading yours very carefully before you sign it. Failure to do so could have costly repercussions. Not only could you wind up having to pay for expenses you were not anticipating, you might also wind up in court trying to resolve a commercial real estate dispute. To avoid this (or in the event that you are already in this predicament) it will be crucial to seek legal counsel. 

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