23

Jul
2020

How to Renegotiate a Commercial Lease ?

How to Renegotiate a Commercial Lease ?

  Here are some tips on how to contact your Landlord about renegotiating the contract. Make sure to promptly approach your property owner with trust, expertise, backup plan, and an honest wish to meet on a halfway path. Say something early: Speak now when it comes to the end of your leased or when a business doesn't go well. Don't suddenly apply for an unsuspecting landlord to have a reduction. You must leave time, if necessary, for a second renegotiation, and you surely won't seem unprepared. Call on the phone instead of emailing: The most promising start to talks that satisfy everyone's needs is the informal meetings, shaking hands, and exchanging of documents. But if it's not feasible, go for a telephone conversation instead of an email. Each group is therefore assigned to the mission and listens to one another. There is also always the opportunity to ignore or miss an email. Have the right attitude: Whatever medium you use to connect with your property owner, make sure to function trustingly and professionally. I hope you have a good relationship with your property owner already. This is your occasion to remind him or herself that you are a valuable tenant who tries to find the best option for each party. Do your research and know what to ask for: Many tenants go to renegotiations without understanding what they want or need. Don't come up with vague questions such as, "What do you have to help?” Or "How much can you give me the rental discount?” "Decide if you want a permanent or temporary cut, a discount, permission to deduct from space, or something else. Have all the documentation ready.  What to include in your proposal: The reasoning behind your request should be explained. When market research shows that tenants who lease similar properties get better rates, the figures show. If your company simply cannot achieve ends, for now, prove that. Include the financial statements of the previous year, the current financial statements, a clear proposal, and your business strategy to produce more revenue and pay more for rent in the future, if appropriate. What to do if the answer is “no”: You have to be prepared with the backup package if the answer is "no." After all, this is a negotiation, so it may take many attempts to reach an agreement. If your arrangement is complicated, you could be looking for help from a tenant broker outside of your business. Better still, before even the renegotiation process start, you may want to ask for insight.  However, if you would prefer to take your renegotiation handled for you, Qatar Office Space can help you handle it perfectly.


27

Jun
2020

Renegotiating a Commercial Lease During COVID-19?

Renegotiating a Commercial Lease During COVID-19?

COVID-19 has spread rapidly around the world over recent weeks, forcing firms to shut doors, requiring numerous people to work at home, and causing a record number in these months to claim unemployment. Many of us have found ways to cut our costs in these uncertain times. You might want to renegotiate your lease for your commercial premises, if the business isn't making enough money — or worse — it had to close temporarily. One of the main reasons for renegotiating a commercial lease is to reduce the amount that tenants have to pay temporarily or permanently for their space. Let us explore why you are renegotiating and how you can order the renegotiation. Why Would I Renegotiate My Lease? Also, if COVID-19 doesn't push you to renegotiate your contract, you still benefit from learning how to do so. If your rental is up for renewal or the market shifts, you will benefit from studying the rental conditions on a long-term basis. For example, a more flexible rental term or a different rental length may be required. Also, a financial fight that has nothing to do with COVID-19 can happen in the future for your business, and it could be a business saver to renegotiate your contract. All right, those are all reasonable reasons to renegotiate a lease, but why will a lease pay less rent? Remember that these unsafe times affect all of us. Probably your Landlord is also concerned about finance and business. Also, your business may be difficult to replace if you have been a good tenant for years with your Landlord. What Kinds of Choices do I have for Renegotiation? You will have to figure out what you want and plan to achieve it before approaching your Landlord with your request for renegotiation. Having regard to COVID-19 (or due to general financial difficulties), please follow up on some requests: Rent reduction You will want to offer a lower monthly rental payment if your contract has expired and if you intend to make your renegotiation permanent. Especially if the conditions on the market indicate that you could get your requested price elsewhere, a landlord can agree to this. You can also request a temporary rent reduction with a pledge that after a certain amount of time, you will start paying the initially agreed rate once again. Rent abatement If you don't have enough income right now, but expect to get something back on the road again, you can ask for a rent abatement. Rent abatement is like a loan. This means that you will not pay the negotiated rent, but after those months are over, you will pay back the rent in its entirety, even with interest. Partial rent abatement You can also request a partial rent abatement, meaning that you’ll pay, for example, only 50% of the full rental price for the next three months, and then you’ll later pay back the other 50%, sometimes with interest. Sublease Sub lending your building space is also an option if you can take advantage of the space by another company while you don't occupy it or have extra office space that your business doesn't use. Many landlords agree sublessors, as long as this does not interfere with other property tenants' leasing terms.



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