Over 10 million Americans earn an income from rental properties. One way to bring your earnings to the next level is to perform a commercial lease analysis.
A lease audit in the Greenville, South Carolina area involves performing a legal and financial analysis of your commercial lease. This analysis can help you determine whether your lease is favorable for a landlord or tenant.
It can also uncover ways to increase your bottom line you may not have noticed before. If you are looking for opportunities in a commercial lease agreement analysis, this short and simple guide is for you.
One of the most important clauses to look for in a comparative lease analysis is a provision that gives you the ability to raise rent. You can do this through annual increases or periodic rent adjustments.
Each of these methods can be a good way to increase your bottom line. However, you need to make sure that the amount of the increase is reasonable, otherwise, you could lose your tenants.
Flexibility in Lease Terms
The best commercial lease agreements in the Greenville, South Carolina area are flexible. You want to keep your options open as much as possible, and the right lease agreement will allow you to do that.
The ability to add or remove space, sublease, and even transfer the lease are all valuable rights for both parties. You don't want to be stuck with an outdated lease if your business grows or shrinks.
The right commercial lease agreement can provide tax advantages to the landlord and tenant. For example, you may deduct the rent on a business property from your taxes.
You can also deduct some expenses associated with operating the property from your taxes, such as property inspection costs and utility bills. Consult with a tax professional to determine what deductions you can take.
Sustainable initiatives are important in the Greenville, South Carolina area. Landlords and tenants can work together to create a greener environment.
For example, install solar panels on the property.
Or choose to incorporate sustainable materials into the construction of your building. These initiatives can help both parties save money in the long run.
Understand Competitor Leases
Understanding competitor leases is an important part of the negotiation process. This can help you determine what your lease should look like, how much rent to charge, and what terms to include.
Analyze your competitor's leases carefully and learn how to use them as a guide. This will help you craft the best lease possible.
Commercial Lease Analysis Can Yield Profitable Results
Commercial lease analysis can be a useful tool for businesses and property owners. When you analyze your contracts, you can identify opportunities to improve profitability.
This can help you negotiate more favorable terms with your landlord or tenant. This process can be time-consuming, but it's worth the effort if it helps you boost your bottom line in the future.
PMI Accelerate is a property management company that helps commercial owners improve their leasing contracts. Contact us today to get started!