Preferred Consumer | Small Business | Managing a Small Business | Leasing Basics

Leasing Basics

You usually must make a down payment or deposit.

You usually have two lease options:

  • Flat Lease - annual rate for the length of the lease.
  • Triple Net Lease - A set rate for the length of the lease based on square footage, taxes, insurance, and maintenance.

The renter is responsible for maintenance and repairs.

If you are leasing equipment with the property, you must return it when the lease is up.

Standard leases are for 3-5 years (it is a big commitment).

LEASING TIPS

  • You can find previously leased equipment at very good prices.
  • Make sure the lease has a bailout clause for certain circumstances including health reasons.
  • Make sure you understand what penalties you will have to pay if you break the lease.

  • Make sure to check the market rental rates for properties in the same area and that are the same size (you don’t want to be committed to a lease in which you are paying above market rate).