Common Mistakes Made when Renting Office Space

Van Nuys Commercial Real Estate for Rent and Lease – Van Nuys, California

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Mistakes People Do

There are a number of common mistakes made by businesses when they are selecting new office spaces. From new start ups to well existing corporations the mistakes made always seem to be the same ones. If you’re considering renting office space for your business, it’s important that you study the rental process so that when you’re ready for that new office space you have the basic understanding of how it works. These mistakes can cost you and your business a lot of money if you’re not careful, so make sure you are watching out for them as you begin the rental process. Many of these mistakes are common sense and with a little planning are largely avoidable.

Mistake #1:           Not giving yourself enough time

Give yourself enough time to plan the relocation or the opening of your new business. Not giving yourself time to shop around for spaces can result in unnecessary expense. The longer you wait to execute your plan to rent a space, the fewer options you are likely to have in terms of potential premises and this can then result in a loss of negotiating power. Like anything else in life, preparation always pays off in the end, and in this case, it can end up saving you thousands of dollars.

Mistake #2:          Not Planning for an Exit Strategy or the Future

 What happens if you have to leave the space before the end of the lease term? The rate that you negotiated for 3 years might not seem so great if you have to downsize. Negotiating a shorter term lease might have made the rent more expensive in the short run, but limited your downside expense in the longer term. Clauses that allow for subleasing can alleviate risk. What about if your business out grows the space? Can the landlord accommodate your need for additional space without you having to break the lease? This is something really important you need to ask before signing that lease.

 Mistake #3:          Picking the Wrong Location

What may seem like the right location might in fact not be. The choice of the location depends on your business. Is the geographical location ideal for the staff and the business? I have heard business colleagues comment on the fact that their offices are in the wrong place. Ensure that this mistake isn’t made with some thorough research into how the location will impact both the staff and the daily running of the business. Check transport, local traffic spots, the reputation of an area and so on. It’s better to be armed with all the relevant information before committing.

Mistake #4:           Misunderstanding Insurance

Anyone renting office space will need to carry renter’s insurance that will cover their inventory, equipments, files, machines, computers and whatever else is stored in the office space. Make sure that the your Renter’s insurance policy works together with the lease you’re signing otherwise you might not even be fully covered. Some office rental leases will cover certain types of damage, such as those caused by the building itself being in disrepair; others cover absolutely nothing and leave all insurance costs up to the renter. This means that before you buy a renter’s insurance policy, you’ve got to examine your lease paperwork and see what coverage, if any, is offered – and whether you think it’s good enough.

Choosing office space is a crucial decision that can make or break a business so make sure you take your time, get the right advice and shop around to get the best deal possible.

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