Are you getting ready to secure the perfect lease deal that suits your business needs?
Then it is time to explore some essential tips and tricks to help you negotiate like a pro.
Be Prepared to Negotiate on Price and Terms
Negotiating the price and terms of your lease is crucial for your business's financial success.
Here are three powerful tips to ensure you get the right deal:
- Research, Research, Research: Arm yourself with information about market rates, lease terms, and comparable properties in the area. This knowledge will empower you to negotiate from a position of strength.
- Define Your Priorities: Understand your business's needs and identify your non-negotiables. Prioritise key factors like lease duration, rental costs, maintenance responsibilities, and tenant improvements. Knowing where you stand will enable you to focus your negotiation efforts effectively.
- Create Win-Win Solutions: Remember, negotiation is a give-and-take process. Look for mutually beneficial compromises that address both your needs and the landlord's interests. Finding common ground can lead to a lease agreement that satisfies everyone involved.
- Your landlord is likely to be more experienced than you in negotiating favourable leases. Don’t skip the small print and don’t sign unless you are 100% comfortable with the outcome.
If in doubt seek professional advice.
Scrutinise the Service Charges
When it comes to service charges, utilities, and internet services, transparency is paramount. Here's what you need to do:
- Scrutinise the Fine Print: Thoroughly review the lease agreement for any mention of service charges, utilities, and internet fees. Ensure that the terms are clearly defined, including how these costs are calculated, and billed, and any potential increases over time.
- Request Detailed Invoices: Ask the landlord or property manager for detailed invoices that break down the charges. This will help you track and verify the accuracy of the expenses. Before you sign the lease, you may be able to get sight of the invoices they raised to your predecessors or others in the building to get a clearer idea.
- Seek Clarification: If anything seems ambiguous or unclear, don't hesitate to seek clarification from the landlord or property management. Understanding these charges upfront will prevent surprises down the road. Make sure you know exactly who to contact and how to reach them in case of a service failure or interruption of some sort.
Don't Forget These Vital Lease Considerations:
- Parking and Access Arrangements: Familiarise yourself with the parking options available to you and any restrictions or additional costs associated with it. Additionally, clarify access arrangements to the property, including after-hours access if required.
- Neighbourhood and Neighbours: Take the time to explore the neighbourhood surrounding the property. Consider factors such as proximity to amenities, safety, and the overall vibe. Also, try to gather information about the neighbouring businesses and their compatibility with your own. If you get a chance to have a casual conversation with other tenants before signing the lease this could reveal invaluable insights.
- Repairs and Maintenance: Find out who the designated contact person is for repairs and maintenance issues. Inquire about their response times and the process for reporting and resolving any problems that may arise during your tenancy.
And finally, to assist you in your commercial lease negotiation, here's a checklist you can print and take along:
Commercial Lease Negotiation Checklist:
- Research and gather information about market rates and comparable properties.
- Define your priorities and non-negotiables.
- Prepare a list of questions and concerns to address during negotiations.
- Review the lease agreement thoroughly, paying attention to terms and conditions.
- Seek legal advice if necessary.
- Scrutinise service charges, utilities, and internet fee provisions.
- Request detailed invoices for all charges.
- Clarify parking and access arrangements.
- Explore the neighbourhood and assess compatibility with your business.
- Identify the contact person for repairs and maintenance and inquire about response times.
Go forth, armed with knowledge and confidence, and secure the perfect commercial lease agreement for your business!