It doesn’t matter about the type of shop you own, or you are looking to set your business up. What is important is setting up your business in a profitable location, which an average size based on your current budget.
During the negotiation with your landlord, it’s very crucial to get your desired price that will fall according to your business budget.
You won’t want to spend all your business funds in paying for a shop rent without having enough funds to continue forward.
Even if the price is quite annoying at first, you can get a reasonable rate when you stay on the current location for a few years, but make sure that the first payment rate is within your budget. You should try having a positive relationship with your landlord to get the best out of the price during negotiation.
Here are the nine rules which you need to know as a business owner when negotiating with your landlord;
Everything is negotiable
Don’t try to avoid negotiating whatever you don’t feel comfortable with when the landlord demands. Even if the landlord has already prepared a contract agreement for you to sign, try negotiating to make a further adjustment regarding the deal to suit you. You should know that the contract agreement was initially drafted by the landlord to generate massive profits. Read the contract agreement carefully and mark out what you are not comfortable with and would like to negotiate with the landlord. You can even let the landlord know that you need a few days to review the contract to avoid the mistake of signing what you can’t handle.
Learn about the location
Whenever you are moving your business to a new place, you can try to learn as much as possible about how the market functions around the area. Will you be able to generate enough revenue to pay for the rent throughout the upcoming years? Research and estimate whether the location is a perfect match for your business.
If you have been running your business in another location for several years, paying all of your bills on time with a good record. Try using it while negotiating the landlord; don’t let the opportunity of making an impact that will get you a good deal to get away from you.
Always check the fine print
Read all of the information made available on the fine print before starting your negotiation with the landlord. Don’t just jump to the conclusion of the deal after seeing the shop payment because some landlords include the maintenance fee of the building inside the fine print apart from the shop price. Which can turn up to a massive amount of money when you calculate everything.
Time your decision when negotiating
Always think your words through before speaking when making the negotiating with your landlord. Allow the landlord to elaborate everything first before arranging on the offer. Don’t forget to ask a question about what confuses you during the negotiation process. Try as much as possible to get the best deal that will suit your business by making the right decision.
You can renegotiate on the term
If you sign a contract with your landlord and the time of renewal reaches, you can either chose to keep the terms or try negotiating on new terms. You can use this period to request for deduction of the rent payment if you don’t feel comfortable with the old rate depending on your relationship with your landlord.
Negotiate about your business
You should make it clear to your landlord that other tenants have no right to use your space by using the term exclusivity clause. It will even keep your landlord from assigning a new space on the property to a business competitor tenant based on the contract. Which will save you the stress of going through the hardship of losing your customers to a close competitor on the property?
Explain what you think and want
During the negotiation process, let the landlord know what you think and want by taking the position of the property. Negotiate on the best payment duration that matches your budget, whether six months down payment or yearly. Try negotiating the option of liquidating your space to other business owners whenever you feel that you can’t continue your business on the location.
Request for a professional help
If you feel that you can’t negotiate all by yourself, try using the service of your business attorney. You can elaborate on what you want to your business attorney while the attorney negotiates with the landlord to get you a deal that you desire.