Leasing Space is not for Astronauts! Tips for Leasing Smart

Whether you are apartment hunting or office searching, leasing has plenty of advantages over ownership regardless of whether it's professional digs, or that hot new loft you've been eyeing for yourself. In this article, I offer some insight into the power-play of leasing and crucial items to both scrutinize and negotiate, and methods for getting the most out of your almighty dollar. First things first, you must find this wonderland. Whether it be on Craigslist or the Times, online or a drive-by, however you find your space, you've taken the first step into the future. Next, it's time to document your new find. Hate contracts? Don't think that you want to write it all down because it's a waste of time? Well beware! Your lease outlines your rules and protects you. Like any other contract, a lease (yes even for an apartment!) is negotiable. Here are two lists of items that you should always negotiate, for residential and commercial spaces:

• Price (You can start with offering a hundred dollars less than what they want and go back and forth from there.... You get the idea)
• Amount of Security Deposit (maybe you want to pay it over time; maybe you want some of it back after a certain length of time; maybe it should be in an interest bearing account)
  
• Requirement of a Co-Signer or Guarantor
• Installation of Fans (who wants to buy or install fans?)
  
• Inclusion of Utilities
• Early termination (I like 90 day clauses - they give the landlord a sense that they'll have some income if you want out early, and there should be enough time to find someone else with no money lost)
  
• Signage (important for commercial businesses - make the landlord buy it!)
  
• Move-in/Move-out charges/Elevator Usage (always try to get out of paying to use an elevator - it never hurts to ask)
  
• Insurance Requirements (usually a must for commercial spaces, but try to negotiate lower limits if you are willing to risk it - you'll save some money)
  
• Landlord maintenance (make sure your landlord has to maintain it - it's his property!)
  
• Parking
• Pets
• Jurisdiction and Venue in case of litigation (you want this to be near where you live, not near the other side in cases of out of state transactions)
  
• Attorney's fees in case of litigation (this should always be a prevailing party provision - whoever wins gets their fees paid!)
  
• And...... You name it!
  

If there is something you want, you need to ask for it. Believe me, if you don't ask for it, and it's important to you, then it will still be important to you when you are in a bind and arguing with your landlord over the rent!

Other important items that tenants should consider is asking for an option to renew or right of first refusal. Just think: you secured this fabulous lease, you have the next 12 months to enjoy the space and relax! But wait. When your lease is over, your landlord can raise your rent at the rate HE thinks is reasonable. If you negotiate an option, and you include a restriction on the amount of the increase (now be reasonable here... rents DO go up!), then you may be able to protect yourself from a renegade landlord who decides to be greedy. If you put that handy "Option to Renew at a Maximum 2% escalation" (or some such fancy-pants language), then when your lease is up, you are in the power position because you know that the rent will not be more than what you negotiated. Thus, it's important to think ahead. Consider it a business pre-nup. It's nothing more than outlining your rules ahead of time. What's more, is that if you ignore me, refuse to have a contract and you have an oral lease, you will hardly be able to prove the terms! So yes. It's all "legal" and such, but your contract can be manipulated so that you get some of what you want as well. Moreover, don't ever think the other guy's forms are going to be drafted in your favor. I draft contracts with MY client in mind - not the other side! I'm hoping the other side is lazy and doesn't read. Never EVER assume their lease form is going to favor you.

Next, never EVER give your deposit or first month's rent unless and until you are satisfied with your lease. Hold on to your money while you can! Once your contract is finalized, then you can hand over the checks. But be sure. Also, make sure your lease is legal. Does the building owner need to approve it even if you've been dealing with management? Be sure. Is it a condo? If so, be sure the association is aware of the lease or sub-lease (same rules apply here for subleases) and include a clause whereby the landlord covenants that he/she is in compliance with all rules. That way if the Board President shows up at your door with a frown, you have someone to blame! Again, you can't always plan for everything, but you can at least be thinking ahead. No one wants to run into a frowning neighbor who has the power to kick you out just for being, right? Be sure.

When I draft contracts or review them for clients, I always ask: "what are your goals?" and "what is important to you here?" Don't forget to ask this of yourself! If you do, your residential or commercial leasing experience will be much more pleasant. For more information, contact me at: alisalevin@yahoo.com or visit my website: www.alisalevin.com. Happy leasing!