The Pre Negotiation Plan
The Initial Negotiation Process
Upon the expression of interest in leasing the space, the landlord will offer a form that states the asking terms of lease. In this case, this will be at the meeting with the developer and landlord of Corporate Court to negotiate the terms of the lease. This form may have a response part or an attachment to complete where I can counter offer. Other situations may just entail a copy of the listing papers with the specific asking terms.
Nonetheless, it is in my best interest as the founder of Executive MatchMaker to prepare an offer or counter offer in written form. This is because I can include selling points as to why I would make an ideal tenant. Moreover, I can tell the landlord about my company and make the negotiation and deal more personal.
Preparation of an offer or counter offer-the Pre Negotiation Plan
The offer or counter offer will be presented from the perspective of my business, that is, Executive MatchMaker and not form a personal perspective even though it is a sole proprietorship.
It is imperative to note that the offer or counter offer is a sales pitch since I will be asking for discordant terms that are more in my favor and want the landlord my business and I as the best choice. The best way to negotiate a deal for the lease of an office rental as a tenant is to have vivid understanding of what I am offering or willing to accept. It is vital that the offer or counter offer is made in writing. This is because it can be difficult to prove later that a prominent provision was excluded from a lease when I thought it was included all along. In as much as putting the offer or counter offer in writing may consume considerable time it offers certain legal protection in the event of a dispute later.
The offer will include the following:The Pre Negotiation Plan
Nature of my Business
The landlord needs to know the nature of my business just in case there are any special contemplations or provisions. For instance, businesses that store items of excessive value or utilize hazardous materials are subject to certain restrictions on the use of the property. This is because the nature of a business can affect insurance rates and property value. Given that my aim is to make the negotiation more personal, describing my company in a positive light in terms of the benefits it will bring to the property will go a long way in getting the landlord to accept my counter offer for his or her asking terms.
The Length of the Lease
The length of the lease makes a big difference in how long a tenant will be locked into a lease, as well as, how the landlord may feel regarding other terms a tenant is asking for in an offer or counter offer. For instance, most landlords prefer leases that two years long or more than two years. However, they also welcome one-year lease offers. Despite the fact that a one-year lease costs more and has fewer lease renewal options, a tenant is locked for less time. Since Executive MatchMaker is not a multi-million dollar business, it would not be a wise decision to enter into a lease that commits it that particular space for more than two years. Moreover, businesses expand and outgrow the space. Thus, Executive MatchMaker would not want to be stuck with a long lease. In other situations, for instance, whereby unfortunately the business is struggling and I want to downgrade to a smaller space, I may experience a difficult time terminating the lease. As a result, short term lease length would be ideal for Executive MatchMaker.
Occupancy Date-the Pre Negotiation Plan
Given that I need to move into the space as soon as possible specifying an occupancy date that is not long after the lease agreement will be ideal. Moreover, occupying the space at a sooner date after the lease agreement will play a key role in convincing the landlord to accept the specifications in my offer or counter offer.
Based on my research, a reasonable monthly rent for Richmond B.C. is approximately $3,600 per month. As such I should negotiate a lower amount if not the same amount as $3,600 per month. Paying lower rent will increase the amount of money I have for running the business.
Office Cleaning Policy
Office cleanliness is of extreme importance given that it is the first thing that clients notice when they visit an office. As such, having a cleaning service that is provided by the landlord goes a long way in keeping the office looking great and well maintained. In this regard, I am to negotiate for the most frequent cleaning policy such as biweekly.
Utilities Policy-the Pre Negotiation Plan
With the busy schedules that Executive MatchMaker has due to immense work and given that I am the sole employee of the company, creating time to pay internet, water, garbage service and electricity bills can be difficult. As a result, a lease agreement that entails the landlord paying the utilities will be favorable and is I what I will push for during the negotiations.
Guaranteed Parking Allocation
Parking space is extremely vital to any business when it comes to giving the clients an easy time to access Executive MatchMaker’s office. As such, it is vital that I negotiate for ample parking space in the lease agreement so as to offer good customer service to my clients.
Since the security deposit required on top of the first and last month’s rent will go towards covering any potential damage to the space, allocating a considerable amount will be ideal when terminating the lease. An appropriate amount that I aim to propose for the security deposit is one month’s rent. This is also the amount that most tenants pay.
Sublet Policy-the Pre Negotiation Plan
A landlord will seek to maintain maximum control over occupancy and leasing of the building in that he or she may be reluctant to grant sublet rights to the tenant and will probably want the prerogative to approve or reject each sublet policy. However, since my works sometimes takes me to foreign cities for periods of a few weeks to a month, a lenient sublet policy will be ideal. As such, I will push for a sublet policy that requires no advance notice or approval by the landlord so that I can get the money to pay the rent when I’m not using the office.
Opening Offer: $3,200
Target: $3,600 (1,075 points)
Resistance Point: $4000 (900 points)
Opening Offer: Two months from now
Target: Next month (1,525 points)
Resistance Point: Next month (1,525 points)
Opening Offer: Sublets allowed with no advance notice
Target: Sublets allowed with no advance notice (1,100 points)
Resistance Point: Sublets allowed with one week’s notice (950 points)
OFFICE CLEANING POLICY:
Opening Offer: Biweekly cleanings
Target: Biweekly cleanings (1,400 points)
Resistance Point: Biweekly cleanings (1,400 points)
Opening Offer: Internet, garbage service, water, and electricity included
Target: Internet, garbage service, water, and electricity included (950 points)
Resistance Point: Internet, garbage service, water, and electricity included (950 points)
Opening Offer: Month-to-month
Target: Six months (950 points)
Resistance Point: One year (875 points)
Opening Offer: Two weeks rent
Target: One month’s rent (1,200 points)
Resistance Point: Six weeks rent (1,075 points)
GUARANTEED PARKING ALLOCATION:
Opening Offer: Four spaces
Target: Three spaces (900 points)
Resistance Point: Two spaces (700 points)