What Are Common Pitfalls in Rental Rate Negotiations?

Rental rate negotiations can be tough, and it might never seem like you have the upper hand. Fortunately, there are a few things that you can do to make the situation seem more like a level playing field. This advice from a New York City commercial lease dispute lawyer is meant to help you if you are negotiating the rental rate for a new commercial property. Some of it can be helpful to residential renters as well.

What Should I Do Before Rental Rate Negotiations?

Before rental rate negotiations really begin, you need to be sure that you know what you are getting into. You also need to know if this type of property is the right one for you. You don’t want to get into a multi-year lease only to realize that this deal was not the right fit. That can mean a costly early lease termination or a purposeful constraining of your business or the scope of your project.

This is why you need to carry out a full inspection of the space. How are the amenities? Are things like the HVAC system new, or will repairs and upgrades be needed? Who would be responsible for such expenses? Knowing all of this going in is a necessity.

An inspection also gives you time to figure out if the space is right for your purposes. If it’s not going to accommodate you or your build-out plans, it’s probably best to take a look at another property before you go to the mat and negotiate for a building that isn’t ideal.

What Mistakes Do Tenants Often Make During Negotiations?

Once you have done your research, you still have to make sure that you avoid some of the most common pitfalls during the negotiation process. You should make sure that:

• You are not relying on just verbal agreements
• You have read all of the fine print in the lease agreement
• You have considered your future needs and if the space is a good fit for them
• You are not emotionally attached to the property and you can walk away if necessary
• You have considered more than just the price of the rental
• Lease assignment and subletting terms have been clearly laid out

We also recommend taking your time with this process. If you delay your search for too long, your procrastination could limit your options or make you accept a contract that is less than ideal.

Contact Our Law Firm Today

When negotiating a rental rate or any other part of a deal involving a new property, don’t go it alone. Contact Robert Rosenblatt & Associates to schedule a consultation. Tell us more about what you need to do, and we’ll tell you how our attorneys can be of assistance.