If you have found a commercial space that you have decided to lease, your landlord will probably ask you for a security deposit. Here is some information about security deposits that might be useful to you during this stage of the renting process, as explained in the article “Significant Drafting Issues Specific to Commercial Leases”:
What is the purpose of a security deposit?
Security deposits are the landlord’s way of protecting themselves from tenants who default. If the landlord is at all concerned about a tenant’s ability to pay rent, he or she will ask for a security deposit that will be refunded only at the end of the lease term when the client has met all of the lease requirements.
What is the amount of a security deposit?
The amount a landlord asks for varies based on both the size of the space being rented and the credit history of the potential tenant.
What are some issues surrounding security deposits?
During negotiations you will want to clear up several questions about the security deposit: Will there be interest on the deposit? Will it be credited to rental payments over the course of the term, or will it be refunded all at once at the end of the term? Will it be kept in a separate account if interest will accrue? Address all of these things before you sign the lease.
If your landlord does require you to make a security deposit, make sure that you clarify in negotiations all possible issues that may prevent you from eventually receiving this money back.
If your business is looking for office space in Kansas, give us a call at 913-685-4100 for a tour of our office suites for rent in Overland Park!
After finding potential spaces, submitting initial proposals, and receiving responses, the next step in leasing an office space is to compare the responses to proposals. Here are a few points of comparison you might want to consider as you move forward with your proposals, as suggested in the CityFeet article Proposal Responses:
- Rental Rate. You will want to calculate your rental costs based on both the rentable square feet in a space and usable square footage. To calculate rent based on usable square footage, subtract the load factor from rentable square feet.
- Improvements. If you are planning on making any improvements to a space, you will want to look at the cost to you versus what the landlord will finance. Sometimes owners will cover some or all tenant improvements, whereas others require you to pay for the changes yourself. Compare the improvements different spaces need along with offers of financial assistance from landlords in your responses to determine the most cost-efficient options.
Take your time to objectively evaluate different spaces based on essential points of comparison. You will want to collect this measurable data to help shape your decision before you get attached to any one space.
If you are interested in finding an office space for rent in Overland Park, give a commercial real estate broker in Overland Park a call at 913-685-4100!