Signing a commercial lease is a major commitment. Without careful review, you could end up with unfavorable terms that impact your business. Understanding common pitfalls can help you avoid costly mistakes.
Failing to review lease terms thoroughly
Many tenants sign leases without fully understanding the terms. Hidden fees, unclear maintenance responsibilities, and vague renewal clauses can create financial strain. Carefully review the lease to confirm rent escalation details, common area maintenance charges, and subleasing restrictions.
Overlooking lease duration and termination clauses
A lease with a long term and no exit strategy can hurt your flexibility. Some agreements have automatic renewal clauses or penalties for early termination. Ensure the lease includes fair termination terms, renewal options, and conditions for breaking the lease if needed.
Ignoring zoning and use restrictions
A lease does not guarantee that you can operate your business at the location. Zoning laws and building codes may impose restrictions. Check local zoning ordinances to confirm the property’s permitted uses before signing.
Assuming maintenance responsibilities are clear
Commercial leases often divide maintenance responsibilities between the landlord and tenant. Some landlords require tenants to handle major repairs, even structural ones. Review the lease carefully to confirm who is responsible for HVAC, roof, and plumbing repairs.
Neglecting to clarify expense responsibilities
In addition to rent, tenants may be responsible for property taxes, insurance, and maintenance fees. Leases that pass on unexpected costs can create budget problems. Request a detailed breakdown of expenses before signing.
Underestimating the importance of an attorney review
While landlords draft leases in their favor, tenants have room to negotiate. Ambiguous language or one-sided clauses can lead to disputes. Learning about Ohio real estate laws can help ensure fair terms.
Our experienced attorneys can assist you to understand and negotiate the terms of your commercial lease to ensure that the terms are in your best interest.
