BUSINESS BASICS SERIES
By Dan Cavalli

If you consider a long-term lease you will be able to negotiate better rates and reduce the high cost associated with moving.

 

Leases are generally written in the Landlords favour
The first draft of a lease will be very much in the landlords favour. If they say that it’s only a standard lease, don’t buy the story. There is no such thing as a standard lease. Some of the things you should consider when negotiating to get the best deal possible are:
 
·    The length of time it has been on the market
·    If others don’t want the space
·    If it has been vacant for longer than normal
·    How bad its location is
·    Lack of parking

The more negatives you can put up the more pliable the landlord become.

The key issues to consider when negotiating a lease are:

·    The amount of the rent
·    Whether there is a rent free period
·    Permitted use
·    Particular area leased
·    Overhead costs who pays
·    Who pays for repairs and maintenance?
·    Rights to assignment and subletting
·    Right to renew
·    Right to cancel or leave
·    Insurance requirements
·    Whether any personal guarantees or security deposit is required
·    Option for additional space
·    Length of lease

Ensure you, have a good solicitor at your disposal and don’t sign anything unless your solicitor has reviewed the terms in advance. Ponder the lease to see how you would get out of it if you had to.

Conrad Hilton was famous for getting out of leases and contracts. When they asked him why he was so successful at this he said it was because he knew at the time of signing how he was going to get out of the lease if he had to.

You can be a good as Conrad Hilton by taking time in assessing your lease. Put these ideas into action now. Look at your existing lease and consider how you can terminate it if you had to in a hurry. Wouldn’t it be wise to do that now?

Dan Cavalli
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