Have you ever tried to renegotiate your lease agreement?
You probably suppose that because you are an existing tenant, you do not have the right to ask for the same things a new tenant might negotiate. But, that isn’t the case. It doesn’t matter if you are a new tenant or you have been a tenant for years; you should always consider these five key items when renegotiating a lease with your landlord.
Ask for a rent reduction on your lease
To achieve a rent reduction obviously depend on market conditions, but there could be an opportunity to ask for a reduction in your rent. The best way to ask for a rent reduction is to provide updated market overview and examples. Sent a letter to your Landlord with summary of the market indications, articles and links to other comparable properties in the area.
Ask for Rent Free period
To ask for a few months rent free really depend on the length of your lease agreement. Don’t ask for too long period, because it will cause a cash flow disruption to your landlord. A few rent free months during the summer months will help bring your average rate down. Although rent free periods usually apply in at the start of the lease, you might try to achieve them at other points during the lease term.
Ask for fit-out contribution
A fit-out contribution is a lease incentive that applies to a tenant’s fit-out. For example, a tenant may negotiate to be reimbursed for certain sum for fit-out costs instead of asking for a rent-free period or rent reduction. When you negotiate payment for fit-out works, ask your Landlord about all details: will the payment be made on a reimbursement basis or will you be required to submit all your invoices to your landlord as they come through. Most landlords will choose to pay fit-out contributions on a ‘reimbursement’ basis, provided that their tenant has signed long-term lease agreement.
Readers of this article are encouraged to consult professional advisors prior to acting on any of the material contained in this article. Please contact Property Management Bulgaria Retail for further details.
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