Tips for commercial tenants – signing a new lease or renewing a lease
When it comes time to sign a lease, some landlords may say “this is our standard lease, everybody signs it”. When you hear that, you should stop and think.
If they have a standard lease, it will invariably have terms in their favour. To ensure you can get a fair lease that reflects the current market value of the property, you need to level the playing field by doing the research and understanding the property market. A financial controller or executive will only sign a few leases in their lifetime, so finding the time and commitment to develop the necessary expertise is a challenge.
To ensure you can get a fair lease that reflects the current market value of the property, you need to level the playing field by doing the research and understanding the property market.
You are under no obligation to sign what they present to you. Gaining a basic understanding of the leasing process and the options you have will empower you and lead to your business getting a better deal.
Some reasons tenants may sign a lease without exploring other options because:
They are worried the landlord will not accept any negotiation and stop the deal
They don’t have the knowledge to know what to ask for and what the true market value is.
TRS negotiate lease terms for a living, and we know that in Sydney, it is a tenant’s market. You can get a better deal by searching the market, doing cost analysis and negotiating with your landlord. Even if you don’t intend to move, there are ways to ensure you are getting a good deal.
Arm yourself with basic knowledge so that as a tenant, you know your rights and your potential. Some of the following steps will help you on your way:
Get a basic understanding of the leasing process.
Do some property comparison. Once you start looking, you will have a greater understanding of the deal that might have already been offered to you.
Negotiate with your landlord, or utilize someone to negotiate on your behalf. If you do this, consider who you would like to represent you, as many tenant representation services also take landlord listings.
For more information on how we can help you please contact us.