CHAPTER 14 Expenses to Consider o Consider
There are many more costs to this entire process than the average business owner realizes. Recognizing all these costs and factoring them into your budget will ensure you stay on top of your finances for the whole process. Hidden or unnoticed costs can cripple your company’s leasing budget when not factored in from the start. Like any part in the lengthy process of finding, leasing, and renting space, there are many variables that come into play you need to prepare for. Here are some expenses to consider that often are overlooked until the end of the process.
IMPROVEMENT AND UPGRADE COSTS
Almost always, there are some allocated costs in the lease that the landlord will pay to cover buildouts and any improvements that need to be made. However, even after negotiations, you may require extra improvements or more money into your original buildout. With these costs, it’s really crucial that you work out the lease to include a big enough budget for your buildout. If something really does need an upgrade before your move, I tend to think the landlord should pay for it, if it is really needed. Just make sure your lease has clear definitions as to what is and isn’t included in the budget.
PRE-EXISTING CONDITION CLAUSES
Just as I was talking about buildouts and tenant changes, many 85
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