Businesses Didn't Realize They were Making These Mistakes While Renting
Renting commercial property, whether it's a warehouse or office building, is not always simple and straightforward. On some days, it seems like renting is more of a full-time job than a part-time one. On most days, there are standard duties that must be done, such as paying rent, performing building maintenance, etc. Then, there are big, unexpected problems that occur suddenly but affect many people and add more stress to the job. These include thefts, fires and natural disasters that can affect all of the occupants. Also, lawsuits occur when clients become injured on the property and want to sue the business. There are also problems with not having enough insurance coverage, which causes some renters to pay out of pocket for heavy damages. Overall, it's easy for business owners to make mistakes while they're renting, so it's important that they focus on knowing what could go wrong in the process.
1 - Mistakenly Estimating Rental Costs
A lot of business people set their rates in stone from the beginning. They do not care to compare rates from different properties and look for the lowest rates. They also do not bother to negotiate to get the best offer. As property renters, they should know what other people are willing to pay for the same rental spaces. They should research the types of buildings and locations that are popular with certain types of businesses.
2 - Not Seeing it as a Full Responsibility
Many business owners think that they are only partly responsible for the space where they work. They think that if visitors enter the building and cause damages, the visitors themselves should be sued for the recovery costs. Renters should realize that, even if strangers cause widespread destruction inside, they are still held responsible for any unfortunate events. Renters could be sued by the property owners for not locking the doors or securing the building well enough to prevent unwanted entries.
3 - Not Asking Enough Questions
It's common for renters to feel wary when talking to landlords. They may avoid doing interviews face to face and prefer to talk as little as possible. During interviews, they may avoid asking difficult questions that could challenge the landlord. However, not having enough information about the property could lead to more problems in the long run. Renters should never jump into making decisions and create a long list of questions to ask before renting.
4 - Not Reviewing Their Own Credit or Financial Situation
Some landlords check the credit reports of their potential candidates to see how responsible they are. They want to know which clients are "high risk." Business owners tend to obtain large amounts of credit, and every financial activity that they make is recorded. Many are flagged for not making their payments on time, for borrowing new loans or for filing bankruptcy. It's important that they know their credit score and history before they start renting.
5 - Not Asking for Assistance
It's common for renters to avoid asking for help from other renters. First, they should learn more about the process of renting commercial property and what landlords look for in good renters. The first step is to meet the criteria for a particular landlord. In addition, they should do basic research about property law, business and finance that relate to short-term or long-term renting. Accountants, lawyers and business consultants are available to answer their important questions.