Commercial Property Renting: The Most Common Mistakes

Renting a commercial property can be a challenge, especially if you have little experience in negotiating such deals. In these negotiations, everyone will be trying to get the best deals for themselves, and since your landlord has experience in making such deals, you are likely to make some serious mistakes. We have prepared a list of the common commercial property renting errors to help you avoid these pitfalls.

1. Failing to Recognise Your Role in Maintenance and Repair of the Property

In commercial property, the tenant will usually be responsible for maintenance and repairs on the property. The contract should clearly state the cases where the landlord will cover the maintenance costs. These could be natural wear and tear or any damages which were not caused by the tenants. A contract that uses ambiguous or general language can lead to lengthy court cases which will not be productive for either party involved. 

2. Working Without a Commercial Property Specialist

It is easy to rent more space than you need. Some people even end up leasing space that is not sufficient for their operations. Others will end up overpaying for substandard spaces since they don’t understand the local prices, and they also don’t know how to negotiate correctly. To avoid such problems, you should consider working with a commercial property specialist. They have enough experience and skill to make sure you get the best property at the best price. 

3. Failing to Check the Terms of Rate Increases

If you’re looking for commercial property to rent, you should make sure you check the terms of rate increases. Some landlords may increase the rates for utilities like electricity after revaluating the property, and that can lead to serious inconveniences. You should check the contract to make sure the terms for rate increases are fair and reasonable. 

4. Failing to Consider Your Long-Term Objectives

Every business has goals, and that can involve increasing the number of employees or the scale of the operation. Signing a long-term lease in a property which may not be sufficient in the long term can hurt your business. If you are planning on increasing the size of your business, you should get a short-term lease. Alternatively, you should negotiate with your landlord to allow you to underlet or assign the property when it can no longer sustain you. 

5. Failing to Consider Build Out Costs

Commercial properties typically come with a tenant improvement allowance that helps the tenant optimise the space for their business. A part of this cost may be transferred to you when you move out of the building. You should carefully look at their policy on this allowance as that can help you see if the property is a good deal or a bad deal. 


Renting a commercial property should not be a difficult task. You just need to analyse the contract carefully to make sure you are getting a good deal. Ideally, you should involve an experienced commercial property specialist since they are more capable of getting good deals.

Leave a Reply