Small Business Today Magazine SEP 2014 ELP ENTERPRISES | Page 28

EDITORIALFEATURE

Dealing with Landlords…

The Good,The Bad, & The Ugly
By Jeffrey D. Jones, ASA, CBA, CBI

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ost small business owners will have to deal with a landlord or a landlord’s management company when seeking a facility from which to operate their business. This
occasion can be when the business owner seeks their
first location or when an existing business needs to be moved to
another location. Seeking a new lease can be an exciting experience, but there are many pitfalls that need to be addressed when
negotiating with a landlord.
When leasing a property, it can be a free-standing building
or a space in an office building, a business park, a warehouse, a
shopping center, or a shopping mall. There are many common
elements to a property lease but there can be some unique elements depending upon the type and use of the property. Some
of these elements can be negotiated and some can’t. The following information will summarize the more common elements of a
property lease and will address important issues that may need
to be negotiated to be sure the business will not suffer due to
specified restraints.
The property owner can be an individual or a large investment
company who may or may not be located in the same city as the
property. When negotiating a lease, you will typically be dealing
with a leasing agent who works either directly for the property
owner or a management company who has been hired by the
property owner to manage the property.
Every lease will have Basic Lease Terms that include the location
of the facility to be leased, size of the space being leased, the term
of the lease, the rental rate, and the use of the facilities. Additional
provisions will typically address the following issues:
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Common Area
Maintenance Fees
Real Estate Property Taxes
Real Estate Insurance Costs
Utility Charges
Trash Fees
Merchant/Tenant Association & Related Fees
Advertising Fees
Sign Fees & Regulations
Construction Costs
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