What The Landlord Needs To Know

Renting commercial space can be complicated for sure. There are so many things you need to take into consideration. When renting office space in Toronto, there will be a series of questions you will need to answer to your potential landlord before they allow you to rent their property.

The law governs your accountability as a tenant, but the particulars will be contingent on what the details say in your lease. Don’t skip out on thoroughly reading the lease; you could end up accountable for something you were unaware of.

What everyone needs to know before renting office space in Toronto

There are 7 important questions you should ask your potential landlord about, which you can find below. 

  1. How long will the lease run, and can it be renewed?

  2. How much will the rent be and can it be increased down the road during the lease period?

  3. Is it possible to sub-lease?

  4. What occurs if your landlord goes broke?

  5. Where does the responsibility lie when it comes to insurance?

  6. What is included in the building amenities?

  7. Who is responsible for improvements?

 

It’s essential for you to ask as many questions to your landlord as they will want to ask you.

How long will the lease run, and can it be renewed?

How long will the lease run is a standard questions as well as if it can be renewed after. Negotiating on the rent is important, and make sure you both come to a happy medium.

How much will the rent be and can it be increased down the road during the lease period?

Make sure you are aware if the landlord can increase the rent at anytime. You do not want this to come as a surprise. As a rule with our small office spaces such as 111 Queen Street East, Toronto your price is fixed and does not increase year after year, we offer our clients the optional ability to lock in prices and avoid regular increases with longer terms.

Is it possible to sub-lease?

Sub lease agreement

For example, lets say your business is not where you expected it to be and you now want to sub-lease your space… is it possible to do so with your landlords permission?

What occurs if your landlord goes broke?

Most people don’t intend that their landlord will go broke during the period you have rented out their space. However, it could happen and it has happened before with smaller office space outfits. What happens if that situation occurs?

Fortunately because we work with so many of the major players in turnkey office space such as Regus, and WeWork we have all but eliminated that possibility. And because we handle such a large volume of tenants we often get our clients a better deal than going direct to themselves!

Where does the responsibility lie when it comes to insurance?

Make sure you understand the insurance that comes with your lease and if you should invest in more insurance. Your landlord will want to know this information as well. Your insurance requirements can vary based on your specific business type.

What is included in the building amenities and who is responsible for improvements?

office renovations

When going over the lease and everything that is included, your landlord will explain to you what is included in the building amenities and if they are responsible or you are responsible for improvements. There is always so much information to take in when renting office space, but it’s also viable information and you should come prepared to write it down so you won’t forget.

There's no reason you shouldn't have a good relationship with your landlord

It’s important for your ‘potential landlord’ to trust you and make sure you will be a good tenant. They want to make sure you will be able to pay the rent on time and your business will be a good place to utilize their space.

It’s important to create a positive working relationship with your landlord. It makes life so much easier and if there ever was a problem, you know you could rely on your landlord to be there. You don’t want to expect the worse and make things that way. Create an experience that is beneficial for both parties.

Starting out it’s already going to be difficult and with all the moves and getting set up, you don’t want more stress. As long as you are prepared with the information you need (you can go back to the previous articles to make sure) you should be good to go. Renting office space will not be as bad as you might think. I can’t stress being organized and how important it is.

One of the ways we strive to create a great environment and relationship between our landlords, other tenants, and property management is with our regular networking events, parties, beer calls and much more!

Next up on the blog is information on ‘touring office spaces’ and what to expect. You will want to know what to anticipate and how to organize yourself for this step. Good luck!