Any business owner who has ever signed a real estate lease may have been the victim of a potentially expensive “gotcha”—a financial component of a lease that the business owner may not know exists or doesn’t think is a problem.

Most business owners are not real estate experts, and it’s tough to be good at something you do only once every five years. Knowing what to look for can put you in a better position to negotiate more favorable rates and avoid long-term, expensive headaches.

What are the most problematic “gotchas”?

Operating expense escalations // These also are known as additional rent and pass-throughs. Full-service leases mean that the rate per square foot includes everything—base rent, operating costs, taxes and insurance—and they have a provision that allows the landlord to escalate, or pass through, increases in operating expenses.

The landlord becomes an intermediary, so the escalations are passed through over some stated base amount (either an “operating stop” or a base year amount) that’s included in the full-service rent. The landlord is setting the base amount, which can cost tenants money.

Services // The services section describes what a landlord is responsible for providing. In a full-service lease, it’s closely related to operating expenses, such as electricity, water, heating, elevator, security, janitorial, etc.

It sounds straightforward enough, until the lease interjects a phrase like “during normal business hours, which shall be from 8 a.m. to 5 p.m. Monday through Friday, and 8 a.m. to 1 p.m. on Saturdays, except for legal holidays.” That means no electricity after 5 p.m. during the week? No elevator services except during those business hours?

It’s very unlikely that a landlord would take that step. However, tenants need to be careful that the lease language specifically addresses these types of issues.

Parking // This used to be a no-brainer, as every building has parking or has access to parking for employees and visitors. However, the quantity of parking has become a significant lease issue as more employers are using modular furniture, which means more people per 1,000 square feet of space.

Historically, employers had three parking spaces for every 1,000 square feet of space. Today it’s common that a tenant needs five parking spaces for every 1,000 square feet. Landlords also are pricing parking based on “market costs,” which can be adjusted up from time to time.

Renewal options // These also are known as “flexibility options,” and they give tenants the right to renew (or extend) the lease beyond the initial lease term. Tenants must tell the landlord what they want in the way of options, such as how long a renewal should last. Be aware that tenants with the best credit will be offered lower rates for renewals.

The complimentary publication 25 Gotchas Are Hiding in Your Lease Right Now: Discover the Ones that are Costing You Money can be ordered by sending an email to marketing@wallyandcompany.com.