What You Need to Know About Negotiating a Retail Lease
Updated: Jul 19, 2021
When renting a retail or commercial space, there are many tips and tricks to help you get the deal that you want. However, negotiating rent can be extremely daunting, especially when you're unsure of what you should factor in.
Landlords in Australia wield so much power, so it's understandable why many tenants refuse or are deterred from negotiating the commercial aspects of their lease. But you should know that there is help out there to help you get the best deal possible from Lease Negotiation Services which operate on a no savings no fee basis. No matter what stage you are at in negotiating with your landlord, you can call on them for their advice to see how much more they could save you.
So, if you're worried about negotiating commercial aspects of your lease, we've got you covered. In this article, we'll share with you a quick guide that could help you easily prepare for a negotiation with your landlord or leasing agent. Let's take a look!
Tip #1: Think About Your Term
When negotiating commercial aspects of your lease, it's essential to consider how long you're planning to stay in the premises, especially since a lease is a binding contract. Sadly, you can't just end your lease out of convenience; you'll need to agree to follow a term. Ending a lease early could cost you dearly. You may be able to assign your lease, but your lease term would be shorter with less security for an incoming tenant. You may then be forced to sub-lease your space at a lower rental until the lease expires.
With that being said, be careful about choosing long term leases if you're considering moving in the next few years. If so, negotiate a shorter term lease with an option, allowing you to have more flexibility in choosing to stay or to go. Landlords may try and resist negotiating like this and make you feel uncomfortable doing so. But if you choose a professional advisory company such as Lease Negotiation Services who are experienced in negotiating commercial lease terms, to ensure you get exactly what you want and need for your business or new venture.
Tip #2: Research on Rent and Rent Reviews
Another important factor that you need to consider when negotiating your rent is to ensure that you're being charged a fair rent. You can do this by looking at the market rental rate in the area and similar businesses as yours. The information you gathered can help you negotiate a fair price with your landlord.
Besides knowing the current rent situation in the area, it's also vital to read reviews about the space. You'll be able to find faults in the space, encouraging you to make certain adjustments to your rent.
Lease Negotiation Services can save you the time doing this and negotiate the best price deal in commercial lease terms for you as well as negotiating other incentives and more.
Tip #3: Review Termination and Exit Clauses
Leases will give landlords the right to terminate a lease if a tenant breaches the terms in the contract. With that, you need to ensure that your landlord should notify you if you breach any part of the contract before they can terminate you. Typically, landlords will require a security bond to protect themselves from tenants who cannot pay rent on time and other similar instances. You should know that some landlords may also require a personal guarantee from tenant companies, which may mean your assets like your house or car may be at risk if your business fails to pay the debt.
The Bottom Line: Negotiating Commercial Aspects of Your Lease is Crucial For Your Rent Terms When you negotiate your lease, you're considering your capabilities as a tenant in whatever term you're planning to commit to — whether short or long. Because the more thought you put into your agreement with the landlord, the better for you and your business will be in the long run. Thankfully, there are lease negotiation services that you can rely on to ensure you're on the right track with negotiations. How Can We Help You? If you're looking for lease negotiation services, you've come to the right place. We are Sydney's leading lease negotiators, offering no savings and no fees. Lease Negotiation Services houses a team of specialists who can help you with retail and commercial lease negotiations. Are you a tenant and need help with lease negotiation? Reach out to us today!