Commercial LEase FAQ
1. Do I pay for maintenance?
Who pays for maintenance is determined by the lease wording, the maintenance deductible, and the type of maintenance requested. Many of our commercial leases have a deductible that protects the tenant from any unexpected large expenses. This same deductible protects the property owner from overuse of service calls for clogged drains, air filters, etc.
2. Are utilities included in the rent amount?
Not typically. There are a couple of rare occasions in which the meter situation makes it more practical for the owner to pay for utilities, which would be included in the rent amount. These few properties will be marked under the details section of our Available list.
3. How much is the deposit?
The deposit is typically one-month’s rent, but it certainly depends on the lease situation. In a situation where the Lessee’s credit is insufficient, the owner may ask for an additional deposit to mitigate the risk.
4. When is rent due?
Rent is payable in advance and due on the first day of the month. Many leases provide for a grace period before late charges begin to accrue.
5. Which companies service the utilities?
These naturally depend on the location of the subject property. Mississippi Power and Hattiesburg Water service 80% of our units, but if those do not service your property contact your London & Stetelman representative.
6. What should I do about maintenance issues?
Please call our office with your maintenance requests: 601-268-8770. If it’s an after-hours request, our answering service will handle the call at the same number. We have an army of contractors at our disposal for maintenance issues.
7. What is a triple-net (NNN) lease?
In a triple-net lease, the tenant pays for taxes, insurance, and common area maintenance for the property [If it is a multi-tenanted building, the tenant will pay for their proportionate share of these items]. If the lease is triple-net, it will be marked as such on our Available List.
8. Do I need insurance?
We require General Liability Insurance for all of our tenants (usually of $1,000,000), listing the Lessor as Additionally Insured.
9. What does it mean when a price is "per foot"?
This is common real estate jargon and the full term is "per square foot per year." To calculate monthly rent, you'd take the given number [$/ft], multiply by the square footage in the unit, and divide it by twelve.
10. What is a "build-to-suit"?
This term is used to describe a situation where a property owner has a parcel of land and is looking for a financially strong tenant to sign a lease. With the lease in hand, the owner will construct the building for the tenant, and the lessee will rent the property back. Because this is always new construction, "build-to-suit's" are typically premium rental rates and are usually five years or more.
11. What if the layout in this building isn't what I envisioned?
Property layouts are generally easy to change, and our owners are typically receptive to tenant improvements. Tenants are welcome to do the work themselves [using licensed contractors], and some owners will offer a "tenant improvement allowance" as an incentive to do so. If the owners do the buildout, they typically divide the cost of the buildout until the lease, less any improvement allowance offered.
12. What if I love a property but can't afford the rent?
You're not always out of luck. I'd recommend giving one of our agents a call, because some owners will consider lower offers and it never hurts to make a run at a property. You certainly won't know if you don't try.