One of the biggest commitments you will have to make while starting your business is signing a commercial lease. Depending on the terms of the lease, you could be locked into it for years. Therefore, it is important that you take negotiations with the landlord seriously. Here are some tips to help you during those negotiations.
Do Not Negotiate in Panic Mode
Negotiating while in panic mode can give the landlord the upper hand. Hurried negotiations can be triggered by several scenarios, including the end of your current lease. Regardless of why you need to quickly find a new building, you should never let the need to quickly find a new location dictate how you negotiate with the landlord.
Ideally, you should start looking for a building at least six months before you need to move into it. The time period gives you ample time to find a space and to start negotiations with the landlord. If you are unable to reach an agreement, you will have time to look for another location and negotiate with that landlord.
Know the Comparable Rents
Although the landlord has stated what he or she wants to receive for rent, you can likely negotiate with him or her to get a more favorable lease. However, if you do not know the comparable rates for properties, you will be at a disadvantage. Without the rates, you cannot determine what is a fair rate and could end up paying more than expected for the lease.
To avoid this problem, you need to take the time to research comparable rents in the area. In addition to knowing the rents for those buildings, you need to find out what the security deposits are. With this information, you can not only figure out what is reasonable for the current period, but you can also look ahead to the future to determine how much an increase should be in the future.
Do Not Forget Improvements
If there are any changes that need to be made to the building, now is the time to negotiate with the landlord to repair them. This is your chance to convince the landlord that he or she needs to make the improvements and likely avoid having to foot the bill for the changes.
There is a possibility that the landlord will be reluctant to make the improvements. However, he or she might be more willing if you agree to a long-term lease.
Work with your real estate attorney to find other ways to negotiate for the best possible commercial lease. v
For more information, talk to a company like Law Offices of Bonnie M. Benson, P.A.Share
12 August 2017
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