Leasing a rental space is a two-party deal. The landlord wants to ensure that he is gaining profit from a leaser's usage and that the space is being taken care of properly. The tenants wants to be sure he is getting a good deal and that the space will serve his business purposes. Without a set agreement, wires can get crossed and feuds can commence. When renting a space from hi-reit.com or another organization, make sure that you know how to decide on and negotiate a leasing contract. Standard Concerns It's important that a rental payment agreement is reached. Discuss whether you will pay a gross lease or a triple net lease. Understand whether you have to pay a percentage rate or not. You may rely on a natural breakpoint or negotiated artificial breakpoint to crunch these numbers. For triple net leases, you should be concerned with CAM, or common area maintenance, charges. Make sure you understand these charges and negotiate them since this can be a point of contention between many landlords and tenants. Another concern is the contract term, or the rental schedule. Be sure you know how long you'll get the space and how you may receive an extension. Negotiation Helps So what's involved in the negotiation process? You can negotiate on your own, but you may benefit from hiring a tenant broker. This is a licensed professional in the real estate world who can provide valuable counsel and guidance when you're seeking out a retail space. You may find a licensed tenant broker through your local chamber of commerce or a small business administration. The broker can help you find a tenant-friendly lease, a type of agreement that will favor the tenant over the landlord. The tenant broker can also assist you in understanding the local economy, which will influence how fair the lease is. For more information on retail leases, visit hi-reit.com. Hartman is one of Houston and Dallas’s premier property management companies. (http://www.hi-reit.com/)
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