If you see an ad for commercial premises to rent, the first thing you should do is check you understand the pricing.
Knowing your budget and sticking to it will be crucial to the success of your move, and it is easy to let your heart lead you into paying too much if you like the property you see. Landlords know that, so they could easily persuade you to accept conditions you cannot afford if they see you have a glint in your eye about the place.
Not all landlord price their premises in the same way
Some landlords give you the total price straight up, while others rely on tempting you in with an attractively low price. It’s all legitimate. You just need to ensure you understand the system they are using. Here are the possible variations:
- Gross lease: This should include almost everything. The exception might be the utility bills, so you still need to get details of exactly what is and is not included. The benefit to you of an overall price is that it is easy to budget for.
- Net lease: You can expect to pay property taxes on top of the stated lease amount.
- Double net lease: In addition to setting aside money for the property taxes, you will also need to pay the insurance.
- Triple net lease: You need to pay maintenance on top of the lease amount, as well as insurance and property taxes.
The pricing is just one of several critical issues to understand when leasing business premises. Consider legal help to ensure you have the whole picture before you sign.