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We've had some great responses to the Commercial Leasing Tips that we've shared last year. 

Thank you for your feedback and for sharing this Post with those in your circles of contact, where you feel they could benefit. 

Here are some more valuable tips and suggestions from The Lease Coach that we believe you'll find helpful! And while the owner always has the final decision on matters related to their business, we've come to appreciate the value of engaging experienced professionals in order to benefit from their many years of experience!

Thank you Dale Willerton and Jeff Grandfield for once again providing these helpful insights for our "Business Success" audience!

Dale Willerton

Jeff Grandfield

Negotiating Commercial Leases & Renewals For Dummies

Commercial Leasing Tips for Commercial Tenants

By: Jeff Grandfield – The Lease Coach

For many business-owners, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While an entrepreneur focuses on marketing and managing, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate. 

 
As explained in our new book, Negotiating Commercial Leases & Renewals For Dummies (co-written with my colleague, Dale Willerton), tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for an entrepreneur as the amount of rent he pays will directly affect the business’ financial bottom line.

Whether you are leasing a new location for the first time or negotiating a lease renewal for your business, these are some money-saving tips for tenants:

Don’t Give Post-Dated Cheques: One of the main jobs for a property manager is to collect the rent and, understandably, they prefer to have post-dated cheques. As a tenant, however, you may not have the rent money until the third day of the month. Paying a few days later is far better than bouncing a cheque. Consider if there is a recurring problem with your commercial unit’s air conditioner or the snow hasn’t been removed from the parking lot this week. By not providing post-dated cheques, you retain some control. It is often possible to modify this clause in the commercial lease agreement – or negotiate for its complete removal.

Buying a Business? It has been our experience that the average person buying a business does not fully consider the lease agreement he is taking on. For the purchaser, this is a very good opportunity to improve the situation by trying to negotiate better lease terms. All Offers to Purchase for a business should be subject to final lease approval. You can also speak with the landlord about renewal options and the purchaser’s right to eventually resell the business at a future time. You should also have a Lease Consultant review the Lease Agreement for you.

Request Proposals Be Written: When negotiating a new lease (or a lease renewal), it is most desirable that the landlord or property manager’s proposal be in writing. This creates a paper trail that you can refer back to, if needed. If you are an existing tenant, understand that a landlord may not automatically send you a renewal proposal at the end of your term. If your calls go unanswered, send the landlord a letter requesting a renewal proposal within 10 days. Without looking like you automatically intend to renew your lease, you want to know what deal the landlord expects to do well in advance.

For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to DaleWillerton@TheLeaseCoach.com.  

Jeff Grandfield and Dale Willerton - The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Jeff and Dale are professional speakers and co-authors of Negotiating Commercial Leases & Renewals For Dummies (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or JeffGrandfield@TheLeaseCoach.com or visit www.TheLeaseCoach.com.

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