It is common for people to miss the essential details while perusing the commercial lease agreement that is usually riddled with legal language. But overlooking them can lead to financial and operational issues down the road in Georgia. Here are some commonly overlooked details in commercial lease agreements.
Hidden costs
Oftentimes, people sharpen their focus and check the base rent mentioned in the document but miss out on the costs related to maintenance and utilities. This could lead to unexpected expenses in the future, which in turn may leave a huge dent in the budget of your operational costs.
Personal guarantee clauses
This is a crucial clause that you cannot miss whatsoever as it affects your personal assets. Landlords frequently include personal guarantees to ensure they can come after your personal savings, home or other property if your business defaults on rent.
Restrictions on usage
If you overlook clauses that mention narrow restrictions, it might surprise you later when you attempt to make maximum use of the space the landlord has provided you. Make sure there aren’t clauses that can hinder your functioning immediately or in the later stages. If you find one, make sure you negotiate with the landlord beforehand to reduce the chances of real estate issues in the future.
The need for a hawk’s eye
Sometimes a boilerplate language could nudge you to skim through the document. However, a thorough reading of the agreement is essential to save your company’s bottom line. An experienced real estate attorney can assist in identifying complex details or potential oversights within the document.