Negotiating Your Way for Commercial Space Lease Renewal
Finding a place where you can do business is basic, but finding a place where your business can thrive is priceless. Once you have found a strategic location for business, it is best to take hold of it as long as you can, unless the space has become too little or too ineffective for you, requiring you to move out.
Negotiating for lease renewal can be tricky mainly because space is highly in demand. But do not fret because as an existing tenant, you do have an edge when it comes to negotiating with the property owner.
Unlike in the first lease where you take your time deciding, for renewal, make sure you start the conversations early on. The earlier your landlord knows your intent to renew your lease, the better chances of you extending your stay.
Of course, rent can go up by the time your contract expires, so open the conversation by asking the landlord how much they want to continue working with you. As long as you have been a good tenant, observing rules and making efforts of taking good care of the property, then you have the advantage.
See how much neighboring and similar properties stand at the time. This gives you an idea of whether or not the owner’s asking price is a bit bias against you. Some landlords usually increase rent within legal limits without understanding the market dynamics. Make sure that the additional rent is reasonable.
Look into the possibility of extending the lease. In some cases, there really is no need to renew the lease because the owner will allow you to extend the contract term in lieu of advertising costs for marketing vacant properties.
When the landlord is apprehensive still, negotiate for contract renewal with the promise of making advance payments – paying for rental deposits or moving your due date earlier. Just make sure that this does not jeopardize your business profitability.