When it comes to leasing retail space, there are a lot of myths floating around. Some business owners believe that you need a lot of money upfront to lease space or that you have to sign a long-term lease to get the best deal. But that’s not always the case. This post will dispel some myths about retail leasing and help you understand what you need to know before signing on the dotted line.
#1 It’s all about the location, location, location
One of the most common myths about retail leasing is that it’s all about the location. While it’s true that location is essential, it’s not the only factor you should consider when choosing a retail space. Other factors such as foot traffic, surrounding businesses, and parking can also impact your business. So don’t just focus on the location – consider all the factors before deciding.
#2 Get as short a term as possible
You may have heard that you should get as short a term as possible when leasing retail space. The logic behind this is that you can always renew your lease if you’re happy with the space, but you could be stuck if you sign a long-term lease and then want to move. While there is some truth, it’s not always the best strategy. It may be cheaper to sign a longer-term lease upfront in some cases. And if you do decide to move, many landlords are willing to work with tenants to help them break their lease.
#3 There’s no room to negotiate
Another myth about retail leasing is that there’s no room to negotiate. This is not true. In most cases, landlords and tenants are open to negotiating lease terms. So if you’re looking for a lower rent price or a longer lease term, don’t be afraid to ask.
#4 It’s a waste of money to hire an attorney
Hiring an attorney may seem like a waste of money, but in reality, it can save you a lot of money in the long run. An experienced attorney will be familiar with the ins and outs of retail leasing agreements and can help you negotiate better terms. In addition, an attorney can help you understand your rights and responsibilities under the lease agreement, which can protect you from potential problems down the road.
#5 Finding the cheapest lease will save me the most money
The myth that finding the cheapest lease will save you the most money is untrue. In many cases, the lowest price lease agreement will cost you more in the long run. That’s because the lease agreement terms can often be more important than the monthly rent price. For example, a lower monthly rent price may come with a shorter lease term, which could cost you more in the long run if you need to renew your lease.
#6 I don’t need insurance
Another myth about retail leasing is that you don’t need insurance. This is not true. Most landlords require tenants to carry liability insurance. If you don’t have insurance and something happens, you could be liable for the damages. In addition, if you have employees, you may be required to carry workers’ compensation insurance.
#7 It’s always cheaper to take over an existing lease
Taking over an existing lease may seem like a cheaper option, but in reality, it can often cost you more money. That’s because you may not be familiar with the lease agreement terms and could end up paying more than you need to. In addition, taking over an existing lease can also be a hassle if the previous tenant left the space in poor condition.
#8 You can hardly find good deals on retail leases
The market for retail space can indeed be competitive, but that doesn’t mean you can’t find good deals on leases. If you’re willing to negotiate and do your homework, you can often find a great deal on a retail lease.
For managing any lease management, you need to use the best retail lease management software, and it can help you keep track of your lease agreement, payments, and other essential details. In addition, many lease management software programs offer features such as online bill pay and automatic reminders. This can make it easy to stay on top of your lease and avoid potential problems.
Bottom line
There are a lot of myths and misconceptions. The best way to avoid making a costly mistake is to do your homework and understand all the factors involved before deciding. And if you have any questions, don’t hesitate to ask an experienced attorney for help.
