Business Owner Guide: What Additional Costs to Plan for After Your Commercial Lease is Signed

There’s More Than Just Rental Costs Associated With Signing a New Commercial Lease! Be Prepared for the Hidden Costs That Come With Committing to Commercial Real Estate

You’re about to sign your first commercial lease! Congratulations! You’ve done the hard work of touring commercial properties available for rent, narrowing it down to one, and negotiating the lease. Now, all you have to do is sign the lease and bring your deposit, right? Not exactly. 

Your property manager or landlord has probably told you about what is included in your deposit (the first month’s rent, security deposit, any negotiation-related fees, etc.) but what about the costs that come up after? If you’re not prepared for moving fees or the price of a renovation, you could find yourself delaying your opening date simply because you don’t have the funds to complete the process. Don’t freak out! You’re a smart business owner and you can do this! But just in case you need some extra assistance, Lindner Properties is here to break down what costs to expect AFTER you sign a commercial lease.

Don’t Let Surprise Expenses Ruin the Joy of Signing a Commercial Lease in Mid-Missouri. Be Prepared With These Tips for Unexpected Business Expenses When Moving Into a Commercial Rental Property

Business expenses can start to stack up, especially if you’re in the process of opening your business or moving to a new location. To make it easier for you, we’ve broken down the expenses associated with signing a commercial lease into three categories: leasing costs, renovation costs, and moving costs. Your leasing costs are the fees, deposits, and rent due when you sign the lease. Just like renting an apartment, you have to put money down to secure your location. You’ll probably have to come to the signing with cash in hand for the security deposit, the first month’s rent, and any fees due to your real estate attorney or commercial leasing specialist. Before you sign, you’ll most likely need to pay for insurance and the cost to set up utilities in your name if this is required in the terms of the lease. Don’t walk into your commercial lease signing appointment unprepared! Reach out to Lindner Properties if you have questions about this. 

With leasing costs out of the way, it’s time to cover those unexpected expenses like renovations or moving costs. Let’s get started.

Thinking of renovating your commercial rental property? Be prepared for additional costs 

It should be no surprise to you that it costs a significant amount of money to renovate or modify a commercial rental property. The workers who complete the job will need to be paid, materials will need to be ordered, and the property will need to be inspected before you can open your doors. However, you may be shocked to see certain fees and costs associated with the changes you’ll be making.

Depending on your commercial lease, you may be charged a fee by your property manager or landlord to oversee the renovations. Because they own the building, they will be invested in the changes as well, and the additional time they spend on your changing property will need to be accounted for. Your landlord may also insist on working with a contractor they are familiar with. This could increase your renovation budget, so ask about the renovation terms before you sign your lease.

Even if you’re just painting the walls and installing operations equipment, the cost to update your commercial rental property can add up. Always speak to your landlord before making changes and confirm who is responsible for the costs associated with a renovation. Even small changes like updating blinds or lighting should be approved by your property manager. When in doubt, reach out! Your landlord will thank you for it, and you’ll be happy to not receive fines for making unapproved modifications to your rented real estate.

Common costs associated with renovating a commercial rental property in mid-Missouri

• Architect, engineers, or interior designer fees
• General contractor fees
• Cost of materials
• Construction management fees
• Permitting & inspection costs
  

Moving heavy office equipment & furniture can be expensive. Be prepared for the cost of moving your business in mid-Missouri 

Business owners and organizations who are moving from one location to another will have to deal with moving costs. Depending on the size of your operation, you may need to rent special trucks and a moving team to ensure your equipment is moved safely. Items like printers and refrigerators will need to be moved carefully and shouldn’t be handled by you or your team. The cost of moving will depend on how much you need to move between spaces, what is being moved, and how far the moving team will have to travel. To save a little money, be sure to call around to get quotes from movers, and don’t forget to read online reviews. A cheap moving company isn’t always the best moving company, and checking out customer reviews ahead of time could save you time and lots of headaches.

If you need help finding a trustworthy moving company to bring your business assets to your new commercial rental property, ask your property manager who they recommend. Lindner Properties would be happy to recommend moving services for your business in mid-Missouri.

Other costs associated with moving to a new office or retail space in mid-Missouri

For those who are upgrading and moving into a larger rental property, you’ll need new furniture and tools to fill the space. The cost of furniture has gone up a lot over the last few years, and it can be easy to feel sticker shock over the cost of a desk chair that won’t hurt your back. Luckily, you can often find deals on great office furniture through online marketplaces or local liquidation centers. Be thrifty, and don’t be afraid of investing in good furniture over time. 

To let customers know you’ve moved or that you are a new business opening your doors, plan to purchase signage as soon as possible. This will make it easier for people to find you, and can attract curious new clients or shoppers who are unfamiliar with your business. Lindner Properties can help mid-Missouri businesses with a variety of signage needs at their commercial properties, so be sure to ask about what type of marketing is available to you when you rent with Lindner. 

Finally, don’t forget about transferring your phone and internet systems. You’ll likely need a specialist to come and move the phones to ensure you can still get phone calls to your new space without changing numbers. This is essential for businesses and organizations that rely on office phones for client and customer communications. 

What additional costs & fees should you anticipate after you sign a commercial lease? 

You’ve done it! You have the keys and you’re almost ready to open your doors. However, don’t forget the last-minute details that go into opening a business. At your new location, you may need to work with a different, more expensive internet service provider. You could also be facing higher business taxes or more expensive rental property insurance. One of the best ways to make sure you aren’t getting in over your head is to talk to your potential new property manager about the average cost of services they see at their commercial rental property. You need to budget for absolutely every incidental to make sure you don’t get trapped in a three or five-year lease you can’t actually afford due to unexpected costs.

Choose a property management company, like Lindner Properties, that makes the commercial rental process easy & in your budget

A good property management team like Lindner Properties will work with you to maximize your budget without exceeding it. It’s why we’re mid-Missouri’s first choice for commercial real estate. We’ll not only walk you through properties, but we’ll also walk you through the expenses every new or experienced business owner can expect when moving into a new rented commercial property in mid-Missouri. We’ve served business owners and organizational leaders in mid-Missouri for decades, and we lease dozens of properties in Columbia, Jefferson City, Sedalia, and even in Destin, FL. This rich history gives us the ability to help your business or organization grow effectively.

Are you concerned about signing a lease and never hearing from us again? We don’t believe in signing a lease with you and only checking in when it’s time to renew. Lindner Properties is invested in the success of your business, and whenever you need help navigating an upgrade to your property, you have a business concern, or you just want to share your ongoing success story with us, we’ll be glad to dive in. Choose a commercial property manager who cares. Choose Lindner Properties.

Renting commercial real estate with Lindner Properties means renting with a budget expert. Call today to learn more

Contact Lindner Properties when you’re ready to invest in your business with a new commercial lease in mid-Missouri. We give our tenants our all because we know your success is our success, and we’ll support you through all the ups and downs of managing a business or organization. Call today to see what properties we have available and to gain a better understanding of the cost of renting commercial real estate with Lindner.