A small office lease is usually a short document, and that’s a good thing. But short doesn’t mean simple. Most disagreements between tenants and landlords come from something nobody asked about at the start: who pays for the heat, whether you can hang a TV, what happens if you need to leave early.
Here are the questions worth asking before you sign, grouped by topic. You won’t need every one, but it’s easier to skip a question than to wish you’d asked it.
Money
- What is the monthly rent, and when is it due? Ask how payment works (check, transfer, online) and whether there’s a grace period.
- What exactly is included? Go down the list: heat, electricity, water and sewer, trash, internet, snow removal, lawn care, and cleaning of shared areas. Anything not included is a separate bill you’ll need to budget for.
- If utilities are separate, how are they billed? Your own meter, or a share of the building’s bill? If it’s a share, ask how it’s calculated.
- How much is the security deposit, and when is it returned? Michigan’s security deposit law is written for homes and apartments. For an office, the lease itself sets the rules, so make sure it says how much, what it can be used for, and how quickly it comes back.
- Does rent go up during the lease or at renewal? A fixed increase is easier to plan for than an open question.
- Are there any other fees? Late fees, key replacement, after-hours heating, or move-in fees should be in writing.
Term
- How long is the lease? Month-to-month, one year, or longer. See month-to-month vs. annual leases.
- How much notice does either side have to give to end it? This matters as much on a month-to-month lease as on a long one.
- What happens at the end of the term? Does it renew automatically, convert to month-to-month, or simply end?
- Can I leave early? If there’s a way out, what does it cost?
Use
- What can I use the office for? Most leases have a “permitted use” clause. Make sure it covers your work, including anything unusual, like client sessions in the evening or occasional classes.
- Can clients visit, and how many at a time?
- Can I have employees work from the office? If so, how many?
- What hours can I use the building? Ask about evenings, weekends, and holidays, and how you get in when nobody else is there.
- Can I put my name on the door, on a building directory, or on a sign outside? Ask what’s allowed and who pays for it.
Changes to the office
- Can I paint? If so, do I need to repaint at the end?
- Can I hang shelves, artwork, a whiteboard, or a TV? Nail holes and wall mounts are a common source of deposit disputes.
- Can I bring my own furniture? Is there any furniture in the room now, and does it stay?
- Can I change the lock or add a lock to a cabinet?
- Who handles repairs? If the heat stops working or a window breaks, who fixes it, and how quickly?
The building
- Where do I park, and where do clients park? Is parking shared or assigned? Who plows, and how early in the morning?
- Where are the restrooms, and are they shared? Who cleans and stocks them?
- What internet service is available? Is it provided, or do you arrange your own? Which providers serve the building?
- How do mail and packages work? Is there a mailbox for your office? Where do deliveries go when you’re out?
- Who else is in the building? You don’t need a tenant list, but it helps to know whether the neighbors are quiet offices or something busier.
- Is the entrance step-free? If you or your clients use a wheelchair or walker, ask about the route from the parking lot to your door and the restrooms.
Risk
- What insurance does the lease require? Many commercial leases ask tenants to carry general liability insurance and to name the landlord as an additional insured. Your contents (furniture, computers, files) are usually your responsibility to insure.
- Is a personal guarantee required? Small businesses are often asked to guarantee the lease personally. Understand what you’re signing.
- What happens if the building is damaged? If a storm or fire makes your office unusable, does rent stop?
Get it in writing
A friendly conversation on a tour is a good start. The lease is what counts. If something was promised verbally, like fresh paint before move-in, a reserved parking space, or included internet, make sure it’s in the lease or in a signed addendum.
It’s also reasonable to take the lease home, read it slowly, and have an attorney look at anything you don’t understand. A landlord who’s confident in their lease won’t mind.
Next steps
Bring this list to your tour. The office tour checklist covers what to look at while you’re there, and the small office cost guide helps you add up the answers into a monthly number.
When you’re ready, request a tour.