Market Rental – Steps to Fix Your Questions
Market Rental – I have four rental properties and three of these rental properties have tenants that are breaking the lease. To my knowledge, I am the only rental property in this area that is suffering from this problem. Before I detail my process and methods here, let me preface this information with the following:
THERE IS A CONcellent ONE LOCATION SOONERS CBD AREA (SAE BC) AND IT’S Fantastic. They can throw Jeff the assembling owner of a mansion out the window!
If you’re in the market to lease commercial space, you must investigate both the commercial real estate markets in your area and the market requirements of tenants. As you do research, keep in mind that keeping in touch with the most efficient brokers in your locality can bring about maximum exposure for your properties, can supply you with the most up-to-date listings, and always give you an edge in negotiations when it comes to leasing space. While using an agent, make sure that he/she is an experienced broker. A well-seasoned broker will discuss fees, and provide you the essential feedback as your market demands. The one thing that should not be forgotten is, “They bring the best clients.” While using a broker, expect to be charged a fee. Agencies that represent or specialize in leasing often charge a leasing fee. Many of these fees can be as low as $25.00 and as high as $1000.00. All fees are negotiable but try to avoid paying much.
As a rule of thumb, leasing involves 3 basic processes: negotiating a space agreement, negotiating a lease agreement, and finalizing the lease documents. After you have selected an appropriate space, negotiate a space agreement. At this point, you and your broker, have a basic understanding of your requirements for space. Be sure you conceived in advance the coverage you would need or could need. For example, if you intend to sublease space, negotiate to cover the subleasing fees. Or, if you intend to lease your broker’s office while at the same time renting a suitable space, negotiate how you would like your lease to be drafted. Once the lease documents have been negotiated, it’s simply a matter of executing them.
You should always retain good legal counsel during the negotiating process, as they are invaluable marks for any negotiated document. Also, keep in mind that these documents incur costs and necessities; thus, you must ensure to have dollars to spare in the negotiations. There are costs to forego in lease documents such as pre-paying rent and security deposits, notary charges, government fees, and real estate taxes. For example, a real security deposit equal to two months’ rent would differ from state to state, but lease agreements are generally standard, not inflexible.
It is important to remember a few basic principles in the lease negotiations to ensure that all parties are “in the same ballpark.”
• Understand the tenant’s position in terms of costs and obligations.
• Update both the landlord and the tenant regularly in case there is a change in the negotiations.
• Communication is critical.
Unfortunately, most brokers avoid the negotiation process and settle for a multitude of “weasel clauses” and billions of “standard forms.” That is to their advantage. They want to hammer the tenants and landlords with the most stipulates, and hardest hitting. Many unsuspecting tenants and landlords simply submit these forms without reading them. In the worst of circumstances, combating landlords simply fill these forms out, pay the fees, and in return, tenants now have an extremely overburdened lease that would have been easily avoided by dotting I’s and crossing their T’s.
Market Rental – How much do you know about the I’s and T’s of Lease Forms?
Simply using common sense is often overlooked during the lease negotiation process. All leases should be reviewed with a property attorney so that the essential documents and clauses in the lease are accurate. Once the lease is signed, it becomes a binding legal document for both the landlord and the tenant. I suggest that before signing a lease be 100% positive of what you are signing.
As a professional property management company, we recommend our landlords use the assistance of experts in their field: an attorney specializing in real estate law, an accountant specializing in tax benefits, and a commercial M.L.S. contractor with knowledge in recent operating renovations.
A renovation impacts the lease. So does a market change. The old market is gone forever and each market fluctuates constantly. When the market changes, there are ramifications, be they for the tenant or the landlord. A tenant may decide to move strategically to take advantage of the market conditions. It means that once they are in your space, they no longer want to stay there.