How to Negotiate a Good Lease and Why you Need an Expert with Michael Amler.
Are you about to get into a new lease?
Before you proceed, it would be best if you listened to this episode first. Michael joins me on the show to help us understand the best practices for negotiating leases. He will give us detailed information on how leases work. Michael shares practical examples of how getting into a bad lease can be expensive and draining. He will share some of the mistakes to avoid getting into a lease. Also, if you are considering renegotiating or surrendering a lease, Michael has some advice.
Michael and I will also get into the nitty gritty around rent; how to negotiate the rent, determine the rent, and other jargon around rent.
Listen to learn more.
Key Talking Points of the Episode:
[01:21] Michael’s lease negotiation career
[01:44] Who does Michael serve?
[02:25] Essence of a good negotiation lease
[05:17] Negotiating the rent
[06:08] How to estimate your turnover
[06:48] How businesses determine their rent
[10:33] How to deal with contributions and rent-free period
[15:07] How to do rent reviews
[17:27] Can the base rent be excluded?
[20:10] What is the cost category?
[27:22] The most favourable places in a shopping centre
[33:27] When is the best time to approach a landlord to let them know you are selling?
[35:38] Renegotiating a lease
[39:16] Surrendering a lease
[46:03] Common mistakes when going into a new lease
[50:40] Good examples of poorly negotiated leases
Magical Quotes from the Episode:
“If you don’t understand your business, how can I understand it?”
“If you’re in trouble, sit with the landlord and have an open, honest negotiation conversation.”
“I don’t know any good business that has not been in trouble before.”
“It’s always cheaper in the long run if you get the proper advice.”