Rental Renegotiation
Rental Renegotiation
HSN Expert Teams helps you in on what to do and what not to do when renegotiating your lease.
Renegotiating a commercial lease can be daunting. At best, the whole process can feel like a necessary evil that you can’t wait to move on from. However, when you cruise through your lease renewal without considering all the terms, and most importantly negotiating them, you are actually damaging your business and hurting your bottom line. As a tenant, you have much more power than you think you do–the key is realizing it and proceeding confidently.
Types of Lease Renewal
Current lease is expiring and it’s time to renegotiate a new one to remain in your space or you are midway through your current term but can’t afford the rent as-is. There are steps you can take in both situations in order to reach an agreement that fulfills your needs.
The Dos and Don’ts
When you’re about to negotiate a new lease or a renewal, you want to give yourself enough time from start to finish, without ever having to rush through it. So “Start well in advance”.
HSN Team will provide multiple other locations that tenant would consider moving to if this other deal did not work out, this will help creating a bidding war and position one landlord against the other for competition. The main key is as a customer you have a choice. Negotiating for multiple sites at the same time is what gives you leverage over your landlord.
When going through the lease renewal process, it’s important to consider all details. Make sure you negotiate your parking, signage and your permitted-use rights because these are things tenants take for granted. All of this needs to be written down, who cautions against being too casual with your lease. A lease agreement can be anywhere from five pages to 55 pages, but in general the longer the lease, the better.
HSN will create a barrier between you and the landlord, so tenant should not speak to landlords directly. HSN strategy is to bring the tenant and the landlord together.
While it’s often in your best interest to hire a lawyer to review your documents, you should not let a lawyer negotiate the terms. “HSN personal experience is, most lawyers are not great negotiators. It’s important to know when and where to employ legal help, and not use a lawyer as your crutch throughout. Landlords see lawyers as deal killers, not deal makers.
