The only thing certain about any negotiation is that it will lead to another negotiation
Don’t you agree with this statement? Rather than leaving things just as they are, it is better to negotiate and search for a better solution, especially when signing any agreement.
Not many businesses know that negotiations can help them build better relations, avoid future conflicts (over terms and conditions of agreement), and business growth. Perhaps, if we talk about the real estate industry in Washington D.C., in particular, the importance of negotiations amplifies.
Do you think we are exaggerating?
Well! We are not. To purchase a property for a retail outlet, office space, or industrial space, you need to fill numerous forms that include various terms and conditions. Needless to say that you have to read all the terms and conditions carefully before entering into any contract.
Generally, what happens is that you may or may not agree with specific terms. But, how would you say that to the dealer? That’s where the technique of negotiating comes in handy.
Want to learn how to negotiate? Let’s jump right into it.
Research property value
The only rule of negotiation is to learn the facts. Before you confirm the real estate dealer, it is essential to do your research and know the value of the property you are interested in.
To do that, you can ask the local realtor about insider information or use the internet to get knowledge about similar properties in that particular area. This information will be beneficial while you are deciding about the property’s price or while getting a concession on the property rent.
Why? Because your arguments will be supported by accurate data that is hard to deny.
Focus on non-rent fees while negotiating
For most people negotiating on lease agreements means that reducing the lease payment. Well, logically, it is essential after all, it can reduce the business expenses to a great extent. However, not many people focus on reducing non-rent fees while negotiating.
Getting confused? No worries! We’ll explain it with an example. Suppose your lease agreement states that you have to pay rent, maintenance charges, and some other utility expenses. These extra overhead costs are the non-rent fees that you have to pay when leasing a property. Now, rather than trying to reduce the rent, ask your landlord to waive the maintenance fee.
Believe it or not, but the chances are that landlords will agree. It will help your business save money that otherwise would have been used for paying these additional expenses.
Take the help of professionals
The real estate market is huge and involves several terminologies that you have to understand. It can create difficulties in Concessions Acquisitions in Washington D.C. while negotiating. That is why it is better to get the help of professionals that understand the industry standards and help you get top-of-the-line concessions.
They can explain everything written in the agreement, understand your business need,s and assist you in adding your terms and conditions in the agreement. Besides, a professional’s presence while signing the agreement can also help you in the future if any conflict arises.
Don’t forget the tenant rights
As a businessman, you must think about the long term benefits of your business. However, why are we talking about that right now? What relation do future business benefits have with negotiation?
Well, you might overlook this, but the lease agreement negotiation does impact the future of business. How? Well, the lease agreement includes the nonfinancial clause that contains the right of tenants. You must understand this clause and demand changes that can help your business grow.
For instance, asking for the inclusion of an exclusivity clause in your lease agreement can restrict your competitor’s entry at your location. That means you will be able to create your monopoly that will be very beneficial for your business.
Look for opportunities to sublease
Negotiations are about searching for opportunities that can help you and your business. One such option is ‘the right to sublease.’ Put all your negotiation skills to use to convince your landlord to get this right included in your lease agreement.
What’s the point of this? The right to sublease allows you to get another tenant in your space without breaking the agreement. This way, you can reduce your rent and can also put vacant space into use. Isn’t it great?
To negotiate is like learning art. You have to practice it multiple times to be an expert. However, when your mind is occupied with the idea of expanding your business, you may neglect the importance of negotiating while leasing property. That is why it is recommended to do proper research and take professionals’ help before you sign any agreement.
It will ultimately help you get the beneficial terms and conditions of the agreement that will benefit you immensely.