7 Questions Managers Must Ask Before Signing a Five-Year Lease

Before committing your time and resources to a five-year lease, we recommend business office managers ask the following seven questions:

  1. What is the total lease payment and are there any other costs that I could incur such as interim rent or a documentation fee?
  2. What happens if I want to change this lease or end the lease early?
  3. What are my obligations for the equipment (such as insurance, property taxes and maintenance) during the lease?
  4. What remedies do I have if the equipment doesn’t work properly?
  5. Does this lease automatically renew for an extended period such as 12 months? Does this lease have an auto renewal clause in it?  What is the benefit of it?  
  6. What are the procedures I must follow if I choose to return the equipment?
  7. Are there any extra costs at the end of the lease?

In your experience as a business manager, can you think of any questions that you wish you would have asked before signing a contract?