What You Need to Know about Negotiating Lease Renewal Options

If you have a business establishment or an office that is on lease, being armored with lease renewal information is essential. The terms and policies of your lease can have a strong impact on your business, which is why it is essential to take some time to think through the process.

Lease renewal: The Process and How to Go About it

Every lease agreement should and will have a lease agreement clause. This written clause allows the tenants to extend their lease for a certain period of time, say three to five years usually, by giving the landlord notice time of six to 12 months. The lease renewal also tells in strict terms the rental rates, concessions the tenants will get, and whether the agreement allows for changes in rental rates depending on the market and so on and so forth. As a tenant the onus is on you to read the fine print of the lease agreement. Failing to adhere to the agreement, like defaulting on payment or late payment etc can result in the negating of the lease agreement.

The Art of Negotiation

When you approach your landlord for the renewal of your lease, don’t just shrug it off and take it easy. Before seeking a renewal, collect data about the current market rate, or how much other tenants in the building are paying etc. For example, if you know that the building is only half occupied, or if you know someone’s soon to vacate, then you can negotiate accordingly. Landlords would like to conveniently forget ‘market concessions’ like lower base rent, free rent, or even any upgradation of facilities, unless you remind them. When you want to negotiate for a good deal, start early. Waiting till the last minute to start on your negotiation will make you lose your upper hand.

Legal Help

You knew it and yet you didn’t do it! Most of the time, tenants fail to renew their contract until it is too late. Under the circumstances that a landlord throws you out of his premises, getting a legal help is advised. A legal advisor can help you get reinstated in the property if enough reasons are present. For example, it can help you if you can prove that the delay was only slight, or the delay did not prejudice the owner or that removing from the property has resulted in extreme hardship for you and a great monetary loss.

At the end of the day, all is not lost if you haven’t paid your rent on time. A court of equity can still help you renew your lease.