Most of the commercial space occupants have one key question to ask themselves at least eighteen to twenty-four months before their lease actually expires. This question is “Do they have to remain in the same location or have a changeover’? If the answer to this question is yes, then we have important advice for you. It is important that you negotiate on your lease agreement, or you will be sighing off at the highest rate of the lease that the landlord will offer you.
After finding the perfect space for setting up a saloon or when it is time to renew the commercial space. There is tremendous opportunity to negotiate for a favorable lease. This is indeed a complicated process that is involved rather than renting a new apartment or buying a new commercial space. It is true that the market rate is soaring very high and if you are going to rent it, then someone else will. There are a number of aspects to renting a commercial property rather than just the base rate. Expenses for maintenance, commercial space improvements, and rents are negotiable than the monthly rate. The following are some of the useful tips in negotiating a saloon lease.
Tips for negotiating a saloon space for lease
- Find an appropriate property for a saloon that is worth it
Before leveraging on an ideal space for rent for establishing a saloon, review a number of similar spaces through reliable commercial websites. Gauge the market with some quick research and note down all the comparable leases. Before getting into lease negotiations, try understanding the market and how to make the best use of the market values so as to bargain for a better rate of the lease. Ask few questions to yourself relevant to the commercial space vacancy rate in your locality, about the comparable properties that are renting for, the other properties the landlord owns and who will be your competitor who will be interested in the same property.
- Take help from a real estate expert:
This is one of the best things to do while considering a saloon for lease. Big companies will have their real; estate spaces in multiple business locations. They will modify their own leases according to their own standards. The big tenants thus often dictate the terms of their lease to the property owners. they, in turn, comply with the big business owners as they get what they want out of the deal. This may not be the case for small commercial establishments. And so the best way to get things to work is to hire a real estate broker with good experience in the field such as a real estate banker or an attorney to negotiate the deal on your favor.
- Negotiate the fees apart from the monthly rent:
It is important to negotiate on the fees beyond the basic monthly lease rent. The most important fees that demand negotiation is the maintenance fee. A majority of the commercial property owners demand that the lessee is responsible for the maintenance work and they levy fee on them for the same. Shared spaces or the common area maintenances is another fee that the commercial space renter has to pay to gain access to parking lots, bathrooms, cafeterias, etc. the next important fee is the utility fee. A majority of us pay the utility bill without actually knowing how the usage will be measured. So it is good to negotiate all these factors before entering into a lease agreement.
- Add clauses to the agreement that will enhance your rights:
It is good to add the following clauses to the saloon for lease agreement so that it will enhance the rights of the person taking the lease. The first clause is the ability to sub lease if there is no need of so much space and a sublease will offer the needed revenue to cover the expenses. The second clause is non-compete, which is important for retailers to avoid a direct competitor to lease on the same premises. The third clause should be related to default conditions such as problems with cash flow. so the clause states that if you default on the lease, then you have the right to negotiate on the payment plan and the landlord will not lock you out.
- Try sweetening the deal for the landlord:
Most of the landlords are amenable to lowering the rents on long term commitments and guaranteed cash flow is always enticing for the landlords. It is possible to get the landlord to lower the rent if you agree to make improvements on the property. Also, it may be possible to get improvements for free as well. It has been a long tradition of fixing the property of the landlord in exchange for lowering the rent. The advantage of the renter is that they get their priority improvements in place.
These are some of the for negotiating a saloon lease on your favor. But remember that, whatever tricks you perform, try not to base a lease on overly optimistic assumptions and unrealistic goals with regards to future revenues.