How do you prepare for future lease negotiations and contingencies?

1 Review your current lease

Before you start negotiating a new lease or an extension, you should review your current lease carefully and identify its key terms, clauses, and obligations. You should also evaluate how well the lease has served your needs and expectations, and what aspects you would like to change or improve. For example, you may want to renegotiate the rent, the term, the maintenance responsibilities, the renewal options, or the subleasing rights. You should also check for any notice requirements, penalties, or incentives that may apply to your current lease.

2 Research the market

To negotiate effectively, you need to have a clear understanding of the market conditions and trends that affect your lease. You should research the supply and demand of similar properties in your area, the average rent and vacancy rates, the incentives and concessions offered by landlords, and the comparable leases signed by other tenants. You should also consider the impact of external factors, such as the economy, the industry, and the regulations, on your lease. By doing your homework, you can determine your bargaining power and your best alternative to a negotiated agreement (BATNA).

3 Define your objectives and priorities

Before you enter into a lease negotiation, you should have a clear vision of what you want to achieve and what you are willing to compromise on. You should define your objectives and priorities in terms of the financial, operational, and strategic aspects of your lease. For example, you may want to reduce your rent, increase your flexibility, secure your location, or expand your space. You should also prepare a budget and a timeline for your lease negotiation, and communicate them to the other party.

4 Anticipate potential issues and risks

Lease negotiations can involve various issues and risks that may arise during or after the negotiation process. You should anticipate these potential problems and plan how to address them or avoid them. For example, you may face delays, disputes, or misunderstandings due to incomplete or inaccurate information, conflicting interests, or changing circumstances. You may also encounter risks such as market fluctuations, unexpected costs, or legal liabilities. You should prepare contingency plans and backup options for these scenarios, and seek professional advice if needed.

5 Build rapport and trust

One of the most important factors in a successful lease negotiation is the relationship between the parties. You should build rapport and trust with the other party by being respectful, honest, and cooperative. You should also listen to their needs and concerns, and show empathy and appreciation. By establishing a positive and constructive dialogue, you can create a win-win situation and foster long-term collaboration.

6 Negotiate with confidence and creativity

Once you have prepared for your lease negotiation, you should negotiate with confidence and creativity. You should present your proposal and supporting evidence in a clear and persuasive manner, and highlight the benefits and value of your offer. You should also be open to different options and solutions, and explore ways to create mutual gains and satisfy both parties' interests. You should avoid ultimatums, threats, or emotional reactions, and focus on the facts and the goals. You should also document the agreement and the terms in writing, and review them carefully before signing.