1.      Not negotiating – The entire lease is negotiable. Yes, you would love to occupy the space, but the landlord wants your money even more. Negotiate everything from the rent to who pays for the HVAC unit to if you should pay rent if there is construction in the parking lot.

2.      Paying for the space improvements – The landlord actually has a budget in place for tenant improvements. If you don’t request it, they keep it. And asking for it, isn’t just saying please. There is a format for this request.

3.      Not getting an exclusive clause – You shouldn’t have to compete with a similar business within the same building your landlord owns. You should have exclusive rights.

4.      Not getting 1st right to refusal – This one is super overlooked. Your landlord may own multiple properties in the area. She may buy land and build a building. So, what happens if a competitor attempts to occupy one of your landlord’s spaces nearby? You should be protected from that.

5.      Viewing it like a residential lease – Your lease is an economics lease. Entrepreneurs often look at the cost of the lease based on what they can personally afford. That is a move that causes new entrepreneurs to simply look for the cheapest space to occupy for their business. Big Mistake! Cheaper locations typically have weaker spending in the
area. Know the psychographics of the area so you can make a better-informed decision on what kind of money you can make, not what you’re on the hook toe spend.

6.      Assuming the landlord is nice – I’ve seen so many entrepreneurs negotiate leases on their own because they called, and the landlord was kind. Yeah! He’s kind because he wants you to think he is on your side. When your guard goes down, your rental price goes up!

7.      Not getting someone on your side – Just because you “signed” a lease for an apartment, AirBnB or home, doesn’t mean you have lease negotiation skills. Now, I am not saying you MUST have someone on your side. I am saying have the skills, or, yes, have an agent or entrepreneurial representative helping you.

Now that you understand 7 of the many pitfalls to avoid, what tools can be used to steer you in the right direction? Glad you asked. See how we can help you below.