Has your new would-be landlord done something to make you think you’re not getting the best deal? Or maybe the deal seems too good to be true.
Sometimes a gut feeling is more than just an impulse we can’t shake. Sometimes something they say or do just resonates as wrong. We wonder if we’re just being paranoid, but oftentimes our subconscious is just protecting us.
To help you validate this feeling, here are 4 things that should set off your spidey sense and prove that this person isn’t trustworthy.
They Won’t Budge on a Personal Guarantee
It’s certainly understandable that a building owner, landlord, or property manager would want to protect themselves in case your business defaults for one reason or another. However, there are other ways to give them that protection without exposing yourself.
We’ve written a comprehensive guide on how to get out of a personal guarantee and reach an amicable compromise.
You can do things like putting some money back in their pocket by reducing your tenant improvement allowance or remove any discussed free months of rent from the equation. At the very least, you can have this clause expire after the first year of your lease.
If this is something they’re not willing to bend on, you should likely walk away. This risk is too high.
They Tell You Not to Work With a Broker
If they tell you that a broker’s commission fees would force them to raise your rent, walk away.
This is less likely about wanting to cut you a good deal, and more likely wanting to cut you off from other (and likely better) listings out there in the same market.
A broker’s job is to make sure you get the best possible property for your needs and budget. Don’t let a shady landlord get in the way of that.
“I Promise”
They should be putting any promises in writing. A handshake or verbal agreement to do something for you is not good enough.
What happens if they promise to repave the parking lot, but sell the building before that happens? If you don’t have documentation (such as an Estoppel Certificate) to prove that this was agreed on, you may be left with nothing.
They Offer a Discount For Cash
Cash is fine for the kid who cuts your lawn, not for your commercial lease.
You should be doing everything in your power to legitimize or establish your business and taking the rent payments “off the books” doesn’t do anything for you.
Don’t be lured in by the promise of saving a few dollars a month. This can cost you much more in the long run.
It’s always best to not leave this decision up to you and your gut feelings. We always recommend working with a commercial lease expert who can protect your interests and confirm any suspicions you have about your lease or your new prospective landlord.
And if they insist that you don’t need to bring in a third party, all the more reason to protect yourself!
