Look at Your Lease.

If you are renting your facility get out the lease and read it. It is likely you signed it and put it in a drawer and never thought about it again.

Make sure you know what you need to maintain and what the landlord needs to maintain, particularly the heating and cooling system. If you are required to have the heating system serviced regularly then make sure it is being done. I had an acquaintance who neglected the maintenance only to find that he had to replace an expensive roof top unit.

Check the expiration date and when you have to renew your lease or give notice that you are moving out. Failure to give proper notice may lock you into an expensive lease or a penalty payment. If you want to stay make sure you start negotiation soon enough to avoid negotiating from a weak position.

Look for hidden costs you need to plan for if you have not already; tax payment, common area maintenance, and utilities. If you are billed monthly for these costs is the bill an estimate. Can you be billed for overages and increases? Is trash removal included or are you required arrange it yourself or will you be billed by the landlord? Do you pay the utilities such as heat and electric? If you are in a suite in a larger building is there a way to confirm you are only paying for the utilities serving your unit? I know of a case where a company’s monthly electric bill was cut in half when the tenant next door moved out. They had been unknowingly paying the bill for both units for years. 

If you make modification to the building such as move doors or partitions or even install machine foundations what is your responsibility if you move? Do you have to remove the improvements or restore the building? I know of a case where a tenant installed a foundation for a large machine. When He moved out the landlord claimed because it was mounted permanently on a foundation it was a fixture and need to be left as part of the building. The landlord was hoping had an agreement with the former tenant’s competitor to rent the space and the machine.

Put a reminder in your calendar to review the lease annually so the requirements are fresh in your mind.  

Original content copyright Thomas Robinson 2010