Whilst running a business there will come a time when the company needs a bigger, better or a more conveniently located commercial property. The rent charges that can come with commercial property can seem high at times, but in most cases, there’s room for negotiation. Whether it’s the heart of London or in a quiet rural area in the Midlands, here are 5 ways to help negotiate better rent with your commercial property management company or landlord.
Evaluate the Duration of the Lease
After you’ve completed all the essential forms to get the ball rolling, it’s likely that duration of the rental period will come up in conversation. Deciding what best for your business is key to operating a smooth company, checking your plans for additional growth and how it relates into the size of the property will help dictate whether it’s a viable option for the future. For most small businesses 1-2 year leases are the safest option and asking for the option to renew ensure you will be prioritised over a potential new business moving in. the sorter you lease can be with an option to renew the better, this gives you the freedom to expand or move within a shorter period.
Research Competitors
The amount of rent you pay is one of the most important considerations in a commercial lease agreement. Doing some homework on similar sized properties in similar locations might help to reduce the price. having comparisons to use in your negotiation gives you a justification for a lower rent, it will also show that you’re clued up on the offer and they should try to take advantage. There is also a likelihood that your landlord will want to increase the rent over the years or at the end of the lease, try to negotiate a cap to be involved that benefit both parties and works as a loyalty perk. This help will keep the commercial property as an affordable option and removes the need or want to move again.
Identify Hidden Costs
Once you sign the contract, it’s hard to find a way out if different issues that may occur. Reading over the contract and hiring a professional to review it can help with finding any hidden costs that could catch you out. Building repairs, communication breakdowns and much more should be highlighted to make sure your business is prioritised.
Request Favourable Clauses
Identify areas in the contract you would like to modify, if you’re willing to sign a long-term contract it can put you in a better position to ask for changes. An example would be the ability to sublet, having the option to move quickly and take care of the rent can make the property very tempting to accept. It works if the company becomes smaller and also if you have periods in the year when you need extra space is ideal, but for the quieter periods, having another small business to share the property with would be perfect.
Use Professionals
Short term, hiring commercial property agents can help guide you through the complete process and help to identify your needs and help to make favourable changes to get you the best commercial property, that suits your budget, size and location needs.
