To Lease or Not to Lease: Things To Know
Get The Answers
Here are some questions to ask before signing a lease:
1. Does the lease specifically state the square footage of the premises?
The total rentable square footage of the building?
2. Is the tenant's share of expenses based on total square footage
of the building or the square footage leased by the landlord? Your share
may be lower if it's based on the total square footage.
3. Do the base year expenses reflect full occupancy or are they adjusted
to full occupancy (i.e., base year real estate taxes on an unfinished
building are lower than in subsequent years)?
4. Must the landlord provide a detailed list of expenses, prepared
by a CPA, to support increases?
5. Does the lease clearly give the tenant the right to audit the landlord's
books or records?
6. If use of the building is interrupted, does the lease define the
remedies available to the tenant, such as rent abatement or lease cancellation?
7. If the landlord does not meet repair responsibilities, can the tenant
make the repairs, after notice to the landlord, and deduct the cost
from the rent?
8. Is the landlord required to obtain nondisturbance agreements from
current and future lenders?
9. Does the lease clearly define how disputes will be decided? (Source:
327 Questions to Ask Before You Sign a Lease, by B. Alan Whitson (B.
Alan Whitson Co., (800) 4524480.)