Month to Month Leases vs. Yearly Contracts
harkins / January 7, 2020
When looking for commercial space for lease, location is ultimately the most important aspect. By choosing to be a tenant in Lake Mary, you will have exposure to the Orlando population to improve your business. But, how should you go about your lease? Should you renew on a monthly basis, or should you consider a year-long contract? Well, let us at Harkins Commercial Real Estate help you to make that decision.
Month to Month Leases
A month to month lease is often a great choice for business owners who need flexibility in their lease. This could be because the tenant does not know if they want to be in that particular unit for more than a year. For a new business, it could be that space will not be suitable for their needs.
The downside to a month to month lease is the fact that they are typically more expensive. This is because landlords typically like to have tenants who can guarantee their occupancy and usually provide a discount to those who can extend their lease.
Yearly contracts offer less flexibility, but can definitely provide a discount to a tenant. If you are sure about a commercial real estate property, then a yearly contract is a good idea. It might also be a good idea if you know that this particular space is a hot commodity, and you know that the price will eventually go up.
Having a yearly contract with a fixed payment can help cut costs. Of course, a yearly contract can bind you into having a bad landlord or poor space for a year. Before signing a contract, be sure that you want that space for a year. If you need any help with commercial real estate, don’t hesitate to give us a call today! 407.323.9310
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