Do you want to start a new business or relocate an existing one? Whether for office or retail space, you should be ready to do the negotiations with the property owner. Before you go for that meeting, you must have the right questions ready; to clarify and ensure that you and the property owner are reading from the same script. Getting to the negotiations blindly might cost you in terms of high rent rate and other overheads.
Following are some of the questions that you need to ask before
Who is the owner of the building?
Asking about ownership might seem trivial but one of the pertinent questions that could change the whole approach to the negotiation. Are they a company, individual or even family business? Knowing the proprietor enables you to device the best approach so that you negotiate from a winning point. If you have no experience in dealing with companies, you may need to get a good agent who will help you get the terms right and obtain the best deal- even when dealing with an individual, do not go it alone if you are not confident.
For how long has the proprietor owned the property?
Someone who has owned a property for a long time has no problem when it comes to negotiating for rent rates. This is probably someone who bought the property when the rates were low and now have gone high and therefore they have saved enough. Someone who acquired the property recently may want to charge high to compensate for the high mortgage rates. Ask around; friends and relatives are more reliable and where necessary, check from the company’s website.
How far does the property owner live from the property?
It is easy to deal with someone who is near you. There are many issues you need to consult, some of which may need a physical presence. Thus, if the person lives miles away from their property, it may be expensive for you traveling every other time to catch up with them for important decisions. If the property owners are in different states, decision-making will take long- choose a local company if possible.
What is the building’s history?
Every property has its history. If the building is old, the cost of maintenance will definitely be high. There are also maintenance rates that tenants pay for common area maintenance. New buildings are usually more preferable because the cost of maintenance is quite low. Let your office space lic agent get the details for you on tenants’ turnover in this building. If the turnover is high, it could mean that the rates are high or the proprietor is unbearable. Therefore, you need to take your time before signing that lease document- you could tie yourself to a tricky agreement and ultimately breach the contract by moving out, an expense to you.
Does the owner of the building plan to sell it?
If one has plans to dispose of the property, they are most likely going to increase the rent rates, after all even If you move out, they will sell and get back their money with profit. Someone who has no plans to sell the property will want to charge less so that they retain tenants. Therefore, you need to inquire on such.
Leasing a property requires that you ask the right questions and be clear on every detail before you sign that lease document. Get a reliable property agent who will guide you in negotiating for the best deals.