How to plan for lease negotiations before the end of the Financial Year
As end of the financial year approaches many professionals find this is a stressful time involving managing the end of year protocol and reporting, balancing financial priorities for the coming years and developing a sound annual plan to ensure the business prospers.
If your lease expires in the next 12-18 months now is the best time to begin planning in order to ensure the best outcome for your business
Take a look at when your commercial lease expires. If it is occurring in the next twelve to eighteen months, it may seem unwarranted to commit to a strategy for negotiating a new lease before the new year begins, however now is the best time to begin the process to ensure the best outcome for your business.
What to consider when your lease is expiring:
1. Obtain professional advice
Before any lease is signed, money is paid or occupation of the leased premises commences, obtain professional advice. The time taken to become an expert in commercial lease negotiation is time that could be spent on other areas of your business, both at the end of financial year and at any time throughout the business year.
2. Understand your unique requirements
As the landlord will provide you their standard lease, it will likely favour their terms. It is therefore important that the unique terms critical to your lease are negotiated within the Heads of Agreement (HoA) by your tenant representative and imbedded within the final lease.
If you seek the guidance of an expert tenant representative, they will guide you through the process of lease negotiation. They will search the market, organise property inspections, and take part in skilled negotiation to ensure your needs are met. Even if you aren’t intending to move offices, a tenant rep can guide your negotiations towards cost saving and terms that benefit you as the tenant.
3. Tenant Representation pays for itself
At the outset, the cost of tenant representation may be an unbudgeted expense. However, it is recovered during the lease period (and often in the first year!) due to the terms, incentives and protections drafted into the lease by those acting on your behalf. By employing an expert tenant advocate to assist with your lease negotiation, you can be sure your lease renewal is the best possible deal for you with the greatest savings.
4. Independence matters
Consider the type of professional advice you would take for any business expense and how important it is to receive an independent and non-conflicting service.
When your lease is expiring, why not look towards a professional who is committed to getting you a better deal and saving you money? You can Influence the success of your business by hiring an expert to negotiate your next lease. TRS is an independent tenant advocacy firm free from conflicts of interest, and offer guaranteed savings through expert negotiation.