NEED HELP RE-NEGOTIATING WITH YOUR LANDLORD
Most tenants negotiate with their landlord when their lease is up for renewal. There is a more optimum way to approach this process. The tenant unknowingly gives clues to the landlord or the landlord’s agent through conversation and body language. These clues allow the landlord to understand how much information the tenant has about current market conditions, and therefore how strong a position landlord should take.
The landlord is positioning to get the tenant to renew at the highest possible rate. The landlord will not disclose what rate other tenants in the building renewed at nor will landlord disclose his knowledge of comparable market deals consummated in the area.
The tenant, most of the time, does not know the current market rates and concessions, so blindly negotiates and hopes for the best.
Successful tenants hire the services of a real estate consultant or broker. This advocate educates the tenant about current market rates and discloses the recent transactions completed in the building and the general market area.
Most of the time, the landlord broker will pay for the services of an advisor hired by the tenant. The landlord understands that this is a marketing cost and he will pay this fee to his broker in any event, or if tenant has an advisor, the fee is shared by the landlord broker. Since this fee is paid whether the tenant has his own advisor or not, there is no cost to the tenant,
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