How can you identify a landlord's objectives during lease negotiations?

1 Know your landlord type

The first step to identify a landlord's objectives is to know what type of landlord you are dealing with. Different types of landlords may have different motivations, expectations, and constraints. For example, a private owner may be more flexible and willing to negotiate than a large institutional investor, who may have stricter financial targets and reporting requirements. A local landlord may have more knowledge and influence in the market than a foreign or absentee landlord, who may rely on third-party agents or managers. A new or inexperienced landlord may be more open to learning and collaborating than an established or savvy landlord, who may have more confidence and leverage.

2 Research your landlord's portfolio

The second step to identify a landlord's objectives is to research your landlord's portfolio. This can help you gain insights into their financial situation, market position, and future plans. For example, you can look at their occupancy rates, rent levels, tenant mix, lease terms, and capital expenditures to see how well they are performing and how competitive they are in the market. You can also look at their acquisition and disposition history, development pipeline, and renovation projects to see what their short-term and long-term goals are. By understanding your landlord's portfolio, you can identify their strengths and weaknesses, and their opportunities and threats.

3 Communicate with your landlord

The third step to identify a landlord's objectives is to communicate with your landlord. This can help you build rapport, trust, and understanding with your landlord, and also uncover their hidden or unstated objectives. For example, you can ask open-ended questions, listen actively, and provide feedback to your landlord to elicit their needs, wants, and concerns. You can also share your own objectives, challenges, and expectations with your landlord to create a common ground and a win-win scenario. By communicating with your landlord, you can discover their interests and priorities, and their preferences and constraints.

4 Analyze your landlord's proposals

The fourth step to identify a landlord's objectives is to analyze your landlord's proposals. This can help you evaluate their offers, counteroffers, and concessions, and also infer their underlying objectives. For example, you can compare their proposals with the market benchmarks, your own alternatives, and your negotiation criteria to see how reasonable and attractive they are. You can also look for patterns, trends, and gaps in their proposals to see what they are emphasizing and de-emphasizing, and what they are willing and unwilling to compromise. By analyzing your landlord's proposals, you can determine their value and risk, and their flexibility and urgency.