Discuss and agree on the 5 most important issues in negotiating a lease.The 3rd person in each group will post the 5 in order on the blog.This assignment is worth 1 point.
Group 12: We met as a group to discuss this week's blog topic. As a whole, we all agreed upon the following five issues that are the most important when negotiating a lease.
First of all, the most important issue is always the price (rent, utilities, advertising). What does it cost now? What will it cost in the future? What is coming out of my pocket? These questions are the most important because in business, it always comes down to the bottom line. Secondly, once price is equated into the decision process, the next step is understanding what you can get for that set price. It's important not to bid higher than this number because by this point, you should have already budgeted out a predetermined figure to ensure a higher probability of profitable return. This is the first time you have viable options in negotiating a lease. Now, you can see what options are available (parking, workable space, proper wiring), what locations would be suitable, and what the venue "has to offer you." Familiarize yourself with the location. Is there anything else you need that isn't included? Another important issue is time. Don't over-lease in hopes of getting a better monthly or quarterly rate. It's important to discuss a suitable amount of time to allow the business to build and to see whether or not this is the location for you. The fourth issue we discussed as a group was to be self-assertive. When negotiating a lease, one should act in a confident manner. If you like something, tell them. If there are things that you aren't so happy about, don't be intimidated to mention it. Lastly, the fifth issue we discussed is similar to the fourth, but do not become overly emotional. These are personality traits that aren't appealing in the business world and may be regarded as weakness or something that can be taken advantage of by the leaser.
Group 10: We met as a group and came up with a long list of issues we would want covered when negotiating a lease. Here is a list of what we felt were the top 5 most important: 1)Rent Cost and what is included in the monthly rent 2)Build to Suit: We feel it important as well as cost effective to find a landlord that is willing to build our office in a layout that is most effecient to our needs 3)Long term discount - if choose to stay for (example: 5 years)or longer are they willing to give monthly discount on rent cost 4)To go along with what's included in rent cost: focus on getting trash removal, snow removal, outside maintenance, inside maintenance, etc as part of monthly rent. Most important being if anything breaks inside that it's there responsibility to fix it in a timely manner and not ours. 5)Possible lease to own situation... may be worth considering because if we build a good successful practice we're not going to want to move far
Group 24 came up with these 5: 1. Price. What are utilities normally? Any hidden costs? 2. What's included with the building. Will the owner include any upgrades and/or changes before occupying? 3. What are my responsibilities as tennant. What fees am I responsible for and what fees does the owner pay? 4. Possibility of decreased rent or owning after time. What's the owner's future plans for the building? 5. What does the owner need to know if I decide to change things with the building during my lease?
Group 18 discussed our answers via email and mutually agreed on these top 5 components being the most important:
1.Location: Picking the right place is pivotal. It's important to know the actual businesses around you within the location. For example: a strip with Burger king, family dollar, check-to-cash, and then a chiropractic clinic. But that strip could be in a great location overall? 2.Length of contract: You don't want to tie yourself to something any longer than you have to. Is the rent based on straight rent or will the landlord take a % of your income generated at the property? 3.Responsibility: What responsibilities do you and the landlord have? Repairs, utilitities, shoveling snow from sidewalk and parking lot, mowing the lawn, landscaping, etc. 4.Signage: Are you and the landlord able to come to an agreement about signage that will draw people into your door, but yet is cost effective that the landlord might be willing to cover the expense? 5.Parking: Does the location have convenient parking, or if in a strip mall do your hours coincide with the neighboring businesses hours? Is there a way you can reserve parking for your patients?
We decided that the 5 most important things to consider when negotiating or looking at a lease are.... 1. Lease price compared to immediate and surrounding locations 2. Build-out costs and restrictions 3. Lease length and renewal process 4. Penalties for breach of lease/contract 5. Extra/Hidden fees (snow removal, building repair, etc)
Group 5 We discussed throughout week and via text message and came to some universal agreements. 1. Price always is the uptmost important thing to consider when signing a lease because any business always wants to keep their overhead low in order to start generating true profit. 2. Location is the a close second in this matter as a prime and easily accessable location can make or break any business. 3. Length of lease should always be considered because as young chiropractors starting out it would be unwise to contractually bind yourself to a specififc piece of property when your business may be growing and the need for expainsion may occur. 4. Maintainence and who provides it. Are cleaning crews provided nightly? snow removal? landscaping? 5. If their are other tenants who are they and would they be benefical in helping your business through referrals or hinder the growth of your clinic. We all felt that the list could go on for awhile about important things to look for when signing a lease and that no situation or lease will ever be truly perfect. The important thing is to not sign yourself into a lengthy contract that will prevent any type of growth. HERE WE GO STEELERS
Group 23 We all met at the Barrel House on Thursday to discuss this week’s blog topic and after 2 hours of deep debate we narrowed down our list down to the 5 most important issues in negotiating a lease. 1) The cost of rent we decided was the most important because we would like to keep our overhead low. If the rent is out too high and out of our league we simply would find a different place to rent and open a practice. In addition to the rent we would also be interested in learning the percentage of rent increase over time or a possibility of lowering the rate if we continue to rent for so many years. We would also pay close attention to any extra / hidden fees or penalties we may get trapped into paying. 2) The build out was the next major concern of ours. We all have pretty big plans with what we plan on doing and we would need certain dimensions and accessibility through our build out. Our offices need to be efficient and have a nice flow to them so it would affect our practice not to be able to do what we want with our build out and overall structure of the office. 3) Length of the contract is next important for two different reasons. Some of us are going to have a booming practice form the start and may need to expand right away, while others may not want to tie themselves into something longer than they have to. 4) Responsibilities of the tenant are the next important issues we decided on. Before we sign anything we would want to know who takes care of the maintenance, landscaping, snow removal, trash removal, utilities, basic repairs etc. If we are responsible for doing all of these task is it really worth it to rent here? 5) Signage, parking, and access to the building are also our top concerns. Will we be allowed to have a sign out front? Will the patients be able to see the sign from the road? Is there enough parking available for our patients? How far do the patients have to park from the front door?
Our group has decided on these 5 factors being the most important when negotiating a lease:
1. How much rent will you be paying per month, and for how much square footage.
2. What is the duration of the lease? And if you choose a shorter lease, how much will the rent be raised if/when signing a new lease at the same location?
3. Does the price of the lease per month include cost of maintenance and utilities? And if there is maintenance to be done, does the landlord handle it or is that our responsibility?
4. How much available space is there for parking?
5. How much freedom would we have to modify the building? For example, are we allowed to paint the walls and hang up pictures wherever we want?
1) Cost of rent per square footage, and additional charges that are the renters responsibility. (garbage, sewer, water, etc)
2) Length of the lease and the possibility of a rent to own situation or fees that would occur for early termination of the lease.
3) Access to the building. How much guaranteed parking will the building have. What kind of signage is available at the signing of the lease and will anything else be available later.
4)Whose responsible for premise liability and insurance.
5) What are the terms of possible buildouts and significant changes that could be made to the office.
We feel that there are many other things that must be carefully considered before signing anything but that these 5 are the most critical in your bottom line and ability to grow.
Group 9 discussed and decided that the 5 most important issues when negotiating a lease are:
1. Rent/lease: This not only includes the monthly cost that is agreed upon in the lease but also the length of the lease. Other factors that need to be considered with rent are the amount cost per square foot (to determine how elaborate your office may be), sewage, garbage, parking, and are you able to "build-out" the space accordingly to fit your business. 2. Operating Expenses: Common Area Maintenance shall include maintenance, repair, replacement and care of all lighting, plumbing, roofs, parking surfaces, landscaped areas, signs, non-structural repair and maintenance of the exterior of the building, costs of equipment purchased and insurance premiums to name a few. 3. Demographics: What is the average age, income, educational level and transportation access to your business. "If they build it, they will come." Not necessarily true, be smart about where you place your office in relationship to the demand of your product/service. 4. Signage: This is absolutely crucial in identifying your spot. People need to know that you exist otherwise they won't come and you won't survive. 5. Competition:You do not want to open a business in a area that is already saturated with you competition. Areas with fewer competing businesses will obviously give you a higher market share and more customers. Talk with property management to see if you have a exclusive clause within your lease.
Group #8, after discussion during our group meeting this weekend we came up with these 5 things: 1: Location- This includes the location of the building and the location of your office within the building. It has to be in a easy location to find, and it would help if it was in an area where people are already coming to. The office should be easily found within the building as wel and accessible to all your patients (disability considerations). 2. Accessability to the public- Is the building in a high traffic area that there may be traffic problems, and is the building easy to get to from the road, meaning is the parking lot hard to get to with the way the streets are structured (one ways, no turns, medians, traffic backup from stop lights, etc) 3. Build out restrictions/ costs- How readily can we build out on our practice, and how much extra will it cost us. 4. Demographics of the area- what type of patients will we be seeing, and what type of practice will these patients benifit from. If you want a peds practice and you are in the middle of a retirement center... you might not succeed. 5. Signage- If you can't let people see that you are there and what you are offering, you may have a hard time getting those initial patients into your office.
And we decided that you also need to be able to trust the people you are leasing from, so they arn't trying to take more money from you than what they deserve... :)
Group #4 met after class to discuss this week's blog and came up with the following: 1. Gross Price per square foot. How much is it going to cost after adding in taxes, association fees, maintenance fees, parking spots fees, and any other hidden costs. 2. Length of lease/leasing options. We don't want to be stuck in the same place forever so what are the different length options for leasing? Also is there a lease to own or purchase option in case we do like the location and decide to settle. Is there an exit clause in the lease and what does it entail? 3. Location and Accessibility. Are we located close to our target market? Are there elevators and handicap ramps from the parking lot? Is there enough parking spaces and designated parking spots for the office? Is there foot traffic and well as regular traffic where the office will be easily visible? 4. Build out option and restrictions. Besides following city code, what are our restrictions for build outs? Do we need owner permission? Is any of the build out included in the lease? In today's market owners should offer Tenant Improvement Allowance of at least $25 per square foot in order to get the location rented and start making money. 5. Who is responsible for Building maintenance, what is included (seasonal maintenance, trash removal, untilities), and how much is it? What about common areas in shared buildings?
Group 23 discussed this topic through email and text message.
1) Price is obviously the first main concern. We must have a place that is worth what we pay for it, and all of the additional costs of utilities, possible maintenance, etc. must be out in the open prior to signing a lease.
2) The length of the lease is also very important. In the instance that something is not working out or if we decide that a new location would be a better choice, then we must be able to plan ahead and have a timeline for moving.
3) A possible option to buy would be an important factor to discuss, as if the office does suit our needs perfectly, then we may want to make a long term investment to save money in the long run on our overhead.
4) We would most likely need to customize our office or maybe expand if permitted, so build out options would need to be discussed, so that we could know what would be permitted, what we would need to get permission for, and what would be paid for by the landlord or by us.
5) Finally, we would need to know the parking availability so that patients could have a place to park if the office were busy, as well as how accessible the office space is to the public.
Group 20 We discused during class and came up with this list: 1. Price - You have to make sure that what they are charging in rent will be worth it. You have to keep in mind the location of the office, demographics of the area, the units square footage and how useful is the space in regards to how you want your office set up. 2. Length of contract - Since we will be just starting out, you don't want to be stuck in a long term contract when you are unsure of income possibilties of the area. 3. Ability to terminate the lease - What are the options to get out of the lease is you can no longer afford it or are unhappy with the landlord? What kind of penalties would there be? 4. Responsibilities of the tenant vs landlord - You have to be clear who is resposible for upkeep of the building. You want to make sure everything is up to code and if it is not who is responsible for fixing it. You should also konw about trash pick-up, snow removable, and upkeep of the parking lot. 5. Other tenants - If there are multiple offices in the bulilding, who are the tenants and what kind of business are they running. You want to make sure that the businesses in the building are not going to hinder your ability to make income. You want to make sure that you are not in a building where other's are doing 'shady' business that will look bad on you. You may want to find out how the landlord screens tenants to ensure that there will not be a problem with future tenants as well.
Group 15- We met as a group and determined the 5 most important things regarding negotiating a lease were the following:
1. What is the price per square foot? What are utilities? Are there any undisclossed costs? 2. Will is the cost for the build-out? Will the owner include any upgrades and/or changes to building before occupying the space? What else if anything is included? 3. Who is liable in case of an emergency or damages to the building? 4. What's the owner's future plans for the building? What are the future plans for the neighboorhood? 5. What are the possibilities of decreasing the rent after a prolonged period of time? Is there any opportunity for owning the space completely?
Group 7 discussed this weeks blog in person and over the phone. We determined that the 5 most important issues are:
1. Price: It is important that the rent fits within your current budget.
2. Duration: You do not want to be locked into a contract for an extended period of time in a location that turns out not to meet your needs.
3. Build-out potential: If you decide that the location is right for your practice you may need to alter the physical characteristics to better suit your needs.
4. Tenant-landlord responsibilities: It's important to lay out each persons responsibilities to prevent potential future conflicts, and liability responsibilities in case of damages.
5. Lease termination options: It is important to understand the procedures for terminating the lease and potential penalties of doing so.
Group 13 met at my house to discuss this weeks blog and decided on the 5 following important issues:
1.) Price-Is it a reasonable price for the size and area which the building is in? Can you afford the location with your current income even if the practice doesn't begin with a steady patient base.
2.) Length of Contract- how strict is the lease term? can you end early or extend the lease term and maintain the same price. Is there a fee for cancelling the lease if the location doesn't work out for you?
3.)Repair/Maintenance Costs- when things are broken or need improvement, who pays for the cost? Does the renter cover cost up front and get reimbursed, are they responsible for everything in the building, or does the landlord take care of repair and maintenance as part of the lease?
4.) Build out options- possible? not possible? Limitations to build out?
5.) Parking- is there efficient parking for the office size you are planning? Is there anyway to expand the parking lot? Are there enough handicap spots for your patients?
Group 12: We met as a group to discuss this week's blog topic. As a whole, we all agreed upon the following five issues that are the most important when negotiating a lease.
ReplyDeleteFirst of all, the most important issue is always the price (rent, utilities, advertising). What does it cost now? What will it cost in the future? What is coming out of my pocket? These questions are the most important because in business, it always comes down to the bottom line. Secondly, once price is equated into the decision process, the next step is understanding what you can get for that set price. It's important not to bid higher than this number because by this point, you should have already budgeted out a predetermined figure to ensure a higher probability of profitable return. This is the first time you have viable options in negotiating a lease. Now, you can see what options are available (parking, workable space, proper wiring), what locations would be suitable, and what the venue "has to offer you." Familiarize yourself with the location. Is there anything else you need that isn't included? Another important issue is time. Don't over-lease in hopes of getting a better monthly or quarterly rate. It's important to discuss a suitable amount of time to allow the business to build and to see whether or not this is the location for you. The fourth issue we discussed as a group was to be self-assertive. When negotiating a lease, one should act in a confident manner. If you like something, tell them. If there are things that you aren't so happy about, don't be intimidated to mention it. Lastly, the fifth issue we discussed is similar to the fourth, but do not become overly emotional. These are personality traits that aren't appealing in the business world and may be regarded as weakness or something that can be taken advantage of by the leaser.
Group 10: We met as a group and came up with a long list of issues we would want covered when negotiating a lease. Here is a list of what we felt were the top 5 most important:
ReplyDelete1)Rent Cost and what is included in the monthly rent
2)Build to Suit: We feel it important as well as cost effective to find a landlord that is willing to build our office in a layout that is most effecient to our needs
3)Long term discount - if choose to stay for (example: 5 years)or longer are they willing to give monthly discount on rent cost
4)To go along with what's included in rent cost: focus on getting trash removal, snow removal, outside maintenance, inside maintenance, etc as part of monthly rent. Most important being if anything breaks inside that it's there responsibility to fix it in a timely manner and not ours.
5)Possible lease to own situation... may be worth considering because if we build a good successful practice we're not going to want to move far
Group 24 came up with these 5:
ReplyDelete1. Price. What are utilities normally? Any hidden costs?
2. What's included with the building. Will the owner include any upgrades and/or changes before occupying?
3. What are my responsibilities as tennant. What fees am I responsible for and what fees does the owner pay?
4. Possibility of decreased rent or owning after time. What's the owner's future plans for the building?
5. What does the owner need to know if I decide to change things with the building during my lease?
Group 18 discussed our answers via email and mutually agreed on these top 5 components being the most important:
ReplyDelete1.Location: Picking the right place is pivotal. It's important to know the actual businesses around you within the location. For example: a strip with Burger king, family dollar, check-to-cash, and then a chiropractic clinic. But that strip could be in a great location overall?
2.Length of contract: You don't want to tie yourself to something any longer than you have to. Is the rent based on straight rent or will the landlord take a % of your income generated at the property?
3.Responsibility: What responsibilities do you and the landlord have? Repairs, utilitities, shoveling snow from sidewalk and parking lot, mowing the lawn, landscaping, etc.
4.Signage: Are you and the landlord able to come to an agreement about signage that will draw people into your door, but yet is cost effective that the landlord might be willing to cover the expense?
5.Parking: Does the location have convenient parking, or if in a strip mall do your hours coincide with the neighboring businesses hours? Is there a way you can reserve parking for your patients?
Group 2.3
ReplyDeleteWe decided that the 5 most important things to consider when negotiating or looking at a lease are....
1. Lease price compared to immediate and surrounding locations
2. Build-out costs and restrictions
3. Lease length and renewal process
4. Penalties for breach of lease/contract
5. Extra/Hidden fees (snow removal, building repair, etc)
Group 5
ReplyDeleteWe discussed throughout week and via text message and came to some universal agreements.
1. Price always is the uptmost important thing to consider when signing a lease because any business always wants to keep their overhead low in order to start generating true profit.
2. Location is the a close second in this matter as a prime and easily accessable location can make or break any business.
3. Length of lease should always be considered because as young chiropractors starting out it would be unwise to contractually bind yourself to a specififc piece of property when your business may be growing and the need for expainsion may occur.
4. Maintainence and who provides it. Are cleaning crews provided nightly? snow removal? landscaping?
5. If their are other tenants who are they and would they be benefical in helping your business through referrals or hinder the growth of your clinic.
We all felt that the list could go on for awhile about important things to look for when signing a lease and that no situation or lease will ever be truly perfect. The important thing is to not sign yourself into a lengthy contract that will prevent any type of growth.
HERE WE GO STEELERS
Group 23
ReplyDeleteWe all met at the Barrel House on Thursday to discuss this week’s blog topic and after 2 hours of deep debate we narrowed down our list down to the 5 most important issues in negotiating a lease.
1) The cost of rent we decided was the most important because we would like to keep our overhead low. If the rent is out too high and out of our league we simply would find a different place to rent and open a practice. In addition to the rent we would also be interested in learning the percentage of rent increase over time or a possibility of lowering the rate if we continue to rent for so many years. We would also pay close attention to any extra / hidden fees or penalties we may get trapped into paying.
2) The build out was the next major concern of ours. We all have pretty big plans with what we plan on doing and we would need certain dimensions and accessibility through our build out. Our offices need to be efficient and have a nice flow to them so it would affect our practice not to be able to do what we want with our build out and overall structure of the office.
3) Length of the contract is next important for two different reasons. Some of us are going to have a booming practice form the start and may need to expand right away, while others may not want to tie themselves into something longer than they have to.
4) Responsibilities of the tenant are the next important issues we decided on. Before we sign anything we would want to know who takes care of the maintenance, landscaping, snow removal, trash removal, utilities, basic repairs etc. If we are responsible for doing all of these task is it really worth it to rent here?
5) Signage, parking, and access to the building are also our top concerns. Will we be allowed to have a sign out front? Will the patients be able to see the sign from the road? Is there enough parking available for our patients? How far do the patients have to park from the front door?
Group 16 discussed this via email and decided that the 5 most important issues with negotiating a lease are:
ReplyDelete1. Need to find out the average price in the area you want to practice per square foot of leased space.
2. Is it possible to do a build out and do you need the landlord’s permission.
3. Does the landlord handle any of the maintenance around the building.
4. Would you need the landlord’s approval before selling.
5. Are you going to lease office equipment, tables, and chiropractic equipment as well.
Our group has decided on these 5 factors being the most important when negotiating a lease:
ReplyDelete1. How much rent will you be paying per month, and for how much square footage.
2. What is the duration of the lease? And if you choose a shorter lease, how much will the rent be raised if/when signing a new lease at the same location?
3. Does the price of the lease per month include cost of maintenance and utilities? And if there is maintenance to be done, does the landlord handle it or is that our responsibility?
4. How much available space is there for parking?
5. How much freedom would we have to modify the building? For example, are we allowed to paint the walls and hang up pictures wherever we want?
Group 19 talked mostly by txt and phone calls.
ReplyDelete1) Cost of rent per square footage, and additional charges that are the renters responsibility. (garbage, sewer, water, etc)
2) Length of the lease and the possibility of a rent to own situation or fees that would occur for early termination of the lease.
3) Access to the building. How much guaranteed parking will the building have. What kind of signage is available at the signing of the lease and will anything else be available later.
4)Whose responsible for premise liability and insurance.
5) What are the terms of possible buildouts and significant changes that could be made to the office.
We feel that there are many other things that must be carefully considered before signing anything but that these 5 are the most critical in your bottom line and ability to grow.
Group 9 discussed and decided that the 5 most important issues when negotiating a lease are:
ReplyDelete1. Rent/lease: This not only includes the monthly cost that is agreed upon in the lease but also the length of the lease. Other factors that need to be considered with rent are the amount cost per square foot (to determine how elaborate your office may be), sewage, garbage, parking, and are you able to "build-out" the space accordingly to fit your business.
2. Operating Expenses: Common Area Maintenance shall include maintenance, repair, replacement and care of all lighting, plumbing, roofs, parking surfaces, landscaped areas, signs, non-structural repair and maintenance of the exterior of the building, costs of equipment purchased and insurance premiums to name a few.
3. Demographics: What is the average age, income, educational level and transportation access to your business. "If they build it, they will come." Not necessarily true, be smart about where you place your office in relationship to the demand of your product/service.
4. Signage: This is absolutely crucial in identifying your spot. People need to know that you exist otherwise they won't come and you won't survive.
5. Competition:You do not want to open a business in a area that is already saturated with you competition. Areas with fewer competing businesses will obviously give you a higher market share and more customers. Talk with property management to see if you have a exclusive clause within your lease.
Group #8, after discussion during our group meeting this weekend we came up with these 5 things:
ReplyDelete1: Location- This includes the location of the building and the location of your office within the building. It has to be in a easy location to find, and it would help if it was in an area where people are already coming to. The office should be easily found within the building as wel and accessible to all your patients (disability considerations).
2. Accessability to the public- Is the building in a high traffic area that there may be traffic problems, and is the building easy to get to from the road, meaning is the parking lot hard to get to with the way the streets are structured (one ways, no turns, medians, traffic backup from stop lights, etc)
3. Build out restrictions/ costs- How readily can we build out on our practice, and how much extra will it cost us.
4. Demographics of the area- what type of patients will we be seeing, and what type of practice will these patients benifit from. If you want a peds practice and you are in the middle of a retirement center... you might not succeed.
5. Signage- If you can't let people see that you are there and what you are offering, you may have a hard time getting those initial patients into your office.
And we decided that you also need to be able to trust the people you are leasing from, so they arn't trying to take more money from you than what they deserve... :)
Group #4 met after class to discuss this week's blog and came up with the following:
ReplyDelete1. Gross Price per square foot. How much is it going to cost after adding in taxes, association fees, maintenance fees, parking spots fees, and any other hidden costs.
2. Length of lease/leasing options. We don't want to be stuck in the same place forever so what are the different length options for leasing? Also is there a lease to own or purchase option in case we do like the location and decide to settle. Is there an exit clause in the lease and what does it entail?
3. Location and Accessibility. Are we located close to our target market? Are there elevators and handicap ramps from the parking lot? Is there enough parking spaces and designated parking spots for the office? Is there foot traffic and well as regular traffic where the office will be easily visible?
4. Build out option and restrictions. Besides following city code, what are our restrictions for build outs? Do we need owner permission? Is any of the build out included in the lease? In today's market owners should offer Tenant Improvement Allowance of at least $25 per square foot in order to get the location rented and start making money.
5. Who is responsible for Building maintenance, what is included (seasonal maintenance, trash removal, untilities), and how much is it? What about common areas in shared buildings?
Group 14 discussed through email and text message
ReplyDelete1) Price is the most important since you are just starting out you don't want the rent of the lease to break you right off the bat.
2) Build out availability and if the landlord is going to supply partial build out cost or if you have to have entire cost paid for.
3)What is the length of the lease. If it is too long that you wont be able to get out of if needed this could be a problem for future plans.
4) What are the expenses that the landlord is responsible for and what is the tenant responsible for in the way of repairs and maintenance.
5) How much parking and accessibilty does the practice have to potential patients.
Group 23 discussed this topic through email and text message.
ReplyDelete1) Price is obviously the first main concern. We must have a place that is worth what we pay for it, and all of the additional costs of utilities, possible maintenance, etc. must be out in the open prior to signing a lease.
2) The length of the lease is also very important. In the instance that something is not working out or if we decide that a new location would be a better choice, then we must be able to plan ahead and have a timeline for moving.
3) A possible option to buy would be an important factor to discuss, as if the office does suit our needs perfectly, then we may want to make a long term investment to save money in the long run on our overhead.
4) We would most likely need to customize our office or maybe expand if permitted, so build out options would need to be discussed, so that we could know what would be permitted, what we would need to get permission for, and what would be paid for by the landlord or by us.
5) Finally, we would need to know the parking availability so that patients could have a place to park if the office were busy, as well as how accessible the office space is to the public.
Group 11 discussed this weeks blog question via text and e-mail and decided that the 5 most important issues in negotiating a lease are:
ReplyDelete1)Price- How much will rent cost each month? What is the price per square foot?
2)Length of the lease contract- How long do you expect to be at that location? Are there any incentives to having an extended lease period?
3)Improvement Costs- Who is responsible for paying?
4)Parking- Does the building have parking? How many spaces are reserved for your patients? Is it easily accessible?
5)Reasons/Stipulations for terminating the lease
Group 20
ReplyDeleteWe discused during class and came up with this list:
1. Price - You have to make sure that what they are charging in rent will be worth it. You have to keep in mind the location of the office, demographics of the area, the units square footage and how useful is the space in regards to how you want your office set up.
2. Length of contract - Since we will be just starting out, you don't want to be stuck in a long term contract when you are unsure of income possibilties of the area.
3. Ability to terminate the lease - What are the options to get out of the lease is you can no longer afford it or are unhappy with the landlord? What kind of penalties would there be?
4. Responsibilities of the tenant vs landlord - You have to be clear who is resposible for upkeep of the building. You want to make sure everything is up to code and if it is not who is responsible for fixing it. You should also konw about trash pick-up, snow removable, and upkeep of the parking lot.
5. Other tenants - If there are multiple offices in the bulilding, who are the tenants and what kind of business are they running. You want to make sure that the businesses in the building are not going to hinder your ability to make income. You want to make sure that you are not in a building where other's are doing 'shady' business that will look bad on you. You may want to find out how the landlord screens tenants to ensure that there will not be a problem with future tenants as well.
Group 3 discused this weeks blog over email as well as during class and decided that the 5 most important issues when negotiating a lease are:
ReplyDelete1.Years or duration of the lease/contract including ability or conditions in which the contract may be terminated.
2.Cost of the monthly/weekly rent depending on the type of agreement that was made including the square footage.
3.Build out options
4.Responsibility of expenses including: real estate tax, garbage removal, problems with plumbing, roofing, central heat/air, etc.
5.Parking which will include the accessibility and the amount of spaces that will be allotted for the practice.
Group 15- We met as a group and determined the 5 most important things regarding negotiating a lease were the following:
ReplyDelete1. What is the price per square foot? What are utilities? Are there any undisclossed costs?
2. Will is the cost for the build-out? Will the owner include any upgrades and/or changes to building before occupying the space? What else if anything is included?
3. Who is liable in case of an emergency or damages to the building?
4. What's the owner's future plans for the building? What are the future plans for the neighboorhood?
5. What are the possibilities of decreasing the rent after a prolonged period of time? Is there any opportunity for owning the space completely?
Group 7 discussed this weeks blog in person and over the phone. We determined that the 5 most important issues are:
ReplyDelete1. Price: It is important that the rent fits within your current budget.
2. Duration: You do not want to be locked into a contract for an extended period of time in a location that turns out not to meet your needs.
3. Build-out potential: If you decide that the location is right for your practice you may need to alter the physical characteristics to better suit your needs.
4. Tenant-landlord responsibilities: It's important to lay out each persons responsibilities to prevent potential future conflicts, and liability responsibilities in case of damages.
5. Lease termination options: It is important to understand the procedures for terminating the lease and potential penalties of doing so.
Group 13 met at my house to discuss this weeks blog and decided on the 5 following important issues:
ReplyDelete1.) Price-Is it a reasonable price for the size and area which the building is in? Can you afford the location with your current income even if the practice doesn't begin with a steady patient base.
2.) Length of Contract- how strict is the lease term? can you end early or extend the lease term and maintain the same price. Is there a fee for cancelling the lease if the location doesn't work out for you?
3.)Repair/Maintenance Costs- when things are broken or need improvement, who pays for the cost? Does the renter cover cost up front and get reimbursed, are they responsible for everything in the building, or does the landlord take care of repair and maintenance as part of the lease?
4.) Build out options- possible? not possible? Limitations to build out?
5.) Parking- is there efficient parking for the office size you are planning? Is there anyway to expand the parking lot? Are there enough handicap spots for your patients?