Five Common Mistakes When Negotiating Your Own Airport Hangar Lease
Our 33 years of experience in airport real estate helps us to recognize patterns in the typical mistakes often made when negotiating your own airport hangar lease.
SUITABILITY: Leasing hangar space that does not fit the purpose you intend. Are the roof, walls, and floor in good condition to protect your expensive aviation investment? Will the hangar withstand the elements – through all four seasons? Is it shared with other tenants and is the insurance coverage adequate?
LEASE CLAUSES: What are you responsible for and what is the landlord responsible for? Who is responsible for HVAC equipment maintenance? What happens if the hangar doors don’t function correctly? Costs can escalate quickly if these items are the responsibility of the tenant.
LEASE ASSIGNABILITY: Does the lease allow you to assign it to someone else? What if you lose your medical clearance and/or sell your aircraft? It is important to have the flexibility to assign the lease to another entity.
LEASE REVIEWS: Tenants can miss important notification dates in their lease - such as renewal options and lease terminations. With long waitlists at many airports, it is important to have these dates well noted in your calendar so you can take advantage of a great opportunity. Do you have a clear understanding of what your lease allows?
HIDDEN COSTS: You may be leasing the hangar or airport building, however, are you aware of all the associated costs: ground lease costs; taxes; possessory interest tax; HOA fees (if any); and, utility charges? Which of these are billed to you directly and which are pro-rated? What does your actual monthly lease cost look like?
Negotiating an airport property lease is often more confusing than typical commercial real estate. Ensure you have an aviation real estate expert help you go through the minute details of your lease. You want to fully understand what it is you are signing and all financial implications.
Airport Real Estate can handle these details for you. For those serious about leveraging our expertise to buy or lease Colorado airport real estate, call us today at 719-649-2688.