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Moving from one rental commercial property to another can be a daunting task even if you are a seasoned businessman or manager. There are a lot of things to plan and watch out for when negotiating and moving to a new property and many aspects require meticulous inspection. Often the entire process takes longer than you anticipate and the whole exercise has to be well planned, accounting for delays and possible complications.
You are reading: Top 5 Things To Plan For Smooth Transition From One Rental Commercial Property To Another
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1 Getting Hold Of the Right Broker: If you are hunting an alternative property than the one you currently have, finding the right broker is important. You should be careful about the fact a broker who is good in finding and negotiating an office space may not be good in other types of properties like retail spaces. Similarly, a broker who is strong in one locality or region may not be strong in another locality or region. A good broker can guide you through the entire process of negotiation apart from suggesting good properties.
2 Getting The Legal Agreement Right: Getting the Letter Of Intent (LOI) received from the new landlord vetted from your attorney or lawyer is very important. The lawyer can help you in refining terms and conditions contained in the LOI. It is on the basis of LOI that the landlord will offer a full lease agreement for your consideration. Your lawyer can propose revisions in the LOI which can make your journey smoother during the course of the whole tenure of lease. It is very important to get in writing as to what changes in the property can be made and who will make those changes. It is also very import to decide who will bear the cost of making improvements.
3 Making Improvements In The New Property: It must be made sure the improvements to be made in the new property are carried out with due care. Even if the landlord is carrying out the improvements, you must make sure that all the details of construction that you want are actually taken care of by the landlord. Any mistake in construction will be costly for you since you will have to bear with it for the entire duration of the lease. If you are getting the improvements made, finding a good architect will be important and then you will to work closely with him/her till the work is completed.
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4 Accounting Changes: When you are moving to a new office, you can be given some fixtures or furniture or both by the landlord. Even if you are buying new furniture yourself, such things can be treated differently in books of accounts for tax and accounting purposes when you move to a new property. You can talk to your accountant or get help from a tax consultancy for this. You can also get the property free of rent for first few months. This will impact your tax outgo and you can take help on this matter from an expert.
5 Insurance Requirement: Consult your insurance agent as how the new place will impact your insurance premium and what will be covered and what will be excluded in the new property. You may have some equipments and machinery and the insurance premium for that many change when you move to a new property.
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Category: Lifestyle
