Kari Nealeigh - The Complete Guide to Buying Commercial Real Estate

landlord pay off these fees.

This is what I recommend if you are only looking for short- term tenants. They won’t be around long enough to benefit from keeping their utilities low and other fees. This is favorable to tenants because they avoid getting involved in the day-to-day operations of the property. They have less on their plate, which is probably what a short-term tenant wants. The rent is fixed and all they need to worry about. This type of rent is popular among more than just office space for that reason. During a cold winter, the electric bill may go up but the rent won’t and the tenant won’t be responsible. These types of leases are some of the best types for tenants because of what I’ve said so far, but there are no hidden fees. So it’s easier for companies to budget their monthly and annual expenses when the rent is fixed like this. In longer leases, you can add in some cost flexibility. The “escalation causes” would be in case of increases for insurance and property taxes. Sometimes, language can be included in a lease that increases rent due to variable costs. During a cold winter with a higher electric bill, the next month the rent could be higher to cover that. Of course, these provisions take away the positive aspect of a completely fixed rent. However, it usually isn’t that much of a price difference in these scenarios. The tenant is still responsible for their own insurance for their items. These are some aspects to bring up during negotiations. You may get questions about what services are offered. You may also be asked to show the expected utility cost. This lease is the most common for a reason. It lets the tenant solely focus on their business plan, and puts the responsibility for everything else on

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