Knowing what to negotiate is surprisingly complicated. Landlords may be anxious to fill empty spaces, but they're also eager to make up for the money they've lost during the recession, and, unless you're careful, that bargain lease you sign today can be filled with hidden charges, escalating fees and clauses that kick in when you'd least expect it. Since supply and demand plays a major role in negotiating favorable terms in a lease, potential lessors should know what is currently happening, and what will likely happen in the future in regard to demographics. It is important to be certain that the space meets the specific needs of the business opting to use it. Other aspects to be assessed include what portion of the heating and air conditioning expenses the lease will be responsible for and who will be accountable for paying maintenance costs. Escalator clauses in leases that permit the landlord to increase rates for specific reasons must be well understood to avoid unpleasant surprises. The costs of a long-term versus a short-term lease should be compared to obtain the most cost-effective deal. The issue of subletting space must be defined in a lease agreement so that, if space is outgrown by a firm, a suitable move can be made, considering the position of the landlord as well. Building ownership may be a good investment for sales agencies. As for negotiation skills there are a few ways to help the negotiation process a little more efficient. Successful negotiation of a lease involves the process of listening, feedback, problem solving and suggesting best solution for the conflict. Hence it requires active listening skills which require the listener to concentrate on the discussion and provide feedback whenever required. It is essential to facilitate negotiation and ensure participation. Another skill required is the ability to understand the problem by analyzing from both the party’s prospective. This is to ensure fairness and best decision making that will benefit both the parties. A successful negotiation also requires good problem solving and communication skills. All these skills are important for every business professional.
References:
Cash rent: Don’t negotiate a lease without an accurate budget. (2021). Corn and Soybean Digest, http://ezproxy.liberty.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Ftrade-journals%2Fcash-rent-don-t-negotiate-lease-without-accurate%2Fdocview%2F2555281350%2Fse-2%3Faccountid%3D12085
Bennett. (2010). How to Negotiate a Lease. Entrepreneur., 38(5).
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