In most situations, renewing a lease should be relatively easy for a tenant who is in good standing with the landlord’s lease terms and is comfortable with his own financial position. But in this market, “easy” is a relative term. For example, if you are willing to pay market rents and to accept the landlord’s terms, it will be “easy” to sign the renewal letter. However, if you are seeking some concessions in the rent or terms of the lease, “easy” will not be the first word that comes to mind. The landlord may dig in his heels and the tenant may feel that all the goodwill he built up as a quality tenant has not translated into any benefit. This might be similar to negotiating with your cell phone provider after being a “valued customer” for twenty years: you discover that they treat you about the same as a “new customer”…or worse!
If you are faced with this situation..........
If you are faced with this situation, whether as a tenant or as a landlord, it is important to engage the services of a professional broker who can fairly and accurately facilitate the negotiations. It’s not always about price; having a professional broker can help salvage relationships as well as salvaging the deal itself.
For example, our team learned the value of patience and self-control in a recent lease renewal. From the outset of negotiations, our client’s proposal was met with a stern response and very little cooperation or explanation from the other Party. However, through a patient and thorough negotiation process, our persistence and representation secured some concessions for our client where the other party had initially refused to offer anything. There were several points along the way where we drew on our expertise in order to help our client make the best possible decision even when neither of the available options seemed appealing. And of greatest importance, our client was satisfied with the outcome and the fact that we had his best interests in mind throughout the process.
There can be a successful outcome in any situation. In this particular case, our client never lost control of - or right to -the property he occupied; this was worth far more than a few pennies in the lease rate!
Christopher J. Destino, a Principal at Lee & Associates, is an engaging, responsive professional who enjoys working closely with his clients and helping them succeed.