Do You Know These Commercial Real Estate Terms?

Investing in Gurgaon real estate is undoubtedly one of the best choices an individual can make but no matter how beneficial it is, you must never invest in a property blindly. While opting for a commercial office space for rent, it is very important to be familiar with the real estate terms, so that no one fools you. Many people make the mistake of signing the agreement without paying attention to the real estate terms mentioned in it, about which they repent at a later stage. We bring to you a list of some important real estate terms which every investor should be aware of.

• Full service rent: If your agreement states the term 'full service rent', this means that for the first year, your rent is inclusive of all the expenses including real estate taxes and operating expenses. The tenant, however, will be responsible for paying the amount that might increase as a part of the operating expense.
• Net lease: The net lease is inclusive of operating costs like insurance, property taxes, repairs and utilities apart from the rent. This usually sums up to a huge amount as this amount is in addition to the rent.
• Gross lease: This lease allows you calculate your monthly expenses efficiently as the amount that is paid by the tenant in this lease is the flat rent amount that includes all the landlord-paid expenses like insurance, taxes, utilities and maintenance, to name just a few.
• Commencement date: The date on which the lease begins is the commencement date. Whether you are using the space or not will not alter the commencement date.
• Effective rent: If the rent is paid on the basis of amount per square feet, it is known as effective rent. Concessions and additional allowances are not included in this. You can deal with various real estate companies in Gurgaon, but make sure you are extremely careful while doing so.
• Tenant improvements: Sometimes a tenant needs to make some changes in the property to fulfill his needs – this cost is known as tenant improvements. This amount can be paid by the tenant or by the landlord, depending on the lease terms.
• Letter of Intent: An informal letter between the landlord and the the investor that states that both the parties are good to go ahead with the deal is known as a letter of intent.
• Allowances: The lease mentions a set amount that is decided by the landlord. This amount is provided by the landlord and is mentioned for a particular purpose. The expenses that are not mentioned in the lease do not come under the category of allowances and need to be borne by the tenant.

City Centre Gurgaon is one of the most preferred location by investors looking for a commercial property, but make sure you invest only after being sure of what is written in the agreement.