Negotiating Commercial Leases & Renewals for Dummies is not wasted on savvy chiropractors who want to pay less office rent and protect themselves. Dale Willerton unveiled our new book to rave reviews recently at Parker Seminars in Las Vegas during The Lease Coach seminar. For prospective chiropractors opening their first practice, or established doctors looking at a lease renewal, here arc some valuable leasing tips to better ensure the best lease deal possible: Negotiate to Win: All too frequently, chiropractic tenants enter into lease negotiations unprepared and do not even try to win the negotiations. Often, chiropractors mistakenly set their eyes on just striking a fair deal. This usually plays right into the hand of the leasing agent, who is most certainly negotiating to win the best deal for his boss—the landlord. If you"re not negotiating to win. you won't. In commercial leasing, it's okay to negotiate assertively. Allow Sufficient Time: Lease renewal negotiations should begin at a minimum of twelve months before the term expires. This will give you sufficient time to look at other sites and do your homework. If you can"t get a decent renewal rate, would you rather find out that you need to move with three weeks or six months left on your lease term? For a new location lease agreement, get started at least six months in advance to avoid unexpected situations and delays. Time will be your ally or your enemy, depending on how you use it. Broker—Friend or Foe? It is not uncommon for chiropractic tenants to believe that the real estate agent or broker is working for them. However, it should be noted that the listing agent"s commission is being paid by the landlord, and even an outside agent is surely sharing in that commission. Remember, the higher the rent often means the higher the agent's commission. Whether a landlord-paid agent can represent two masters, you will have to decide for yourself. Brokers and agents do a great job. but who arc they doing that job for and who is paying them to do it? Even the most altruistic agent can't serve two masters equally, so think twice before letting an agent being paid a commission by the landlord represent you. Put Details in Writing: Sometimes you will develop an understanding or handshake agreement with the leasing agent, property manager, or landlord. That person may be reluctant to put that agreement in writing—so you can. As soon as possible after making a verbal agreement of any kind, send a basic letter ore-mail stating: Further to our meeting (of such date), it is my understanding that... and list the agreement details. Ask fora reply so that you have something in writing. While not legally binding, it shows intent. Lease Renewal Allowances: Chiropractors often dont think they can get or deserve a tenant allowance on their renewal term—untrue! Approximately 75% of The Lease Coach clients get a tenant allowance on their renewals. Remember, if the landlord is giving allowances to new tenants, then why cant you get an allowance too? Even if your practice space only-needs cosmetic upgrades, negotiate it as part of the renewal deal. After all. your tenancy is proven, plus there is less risk putting cash into your renewal than taking a chance on a new tenant. Leasing with No Deposit: Most chiropractors have been brainwashed into thinking deposits arc mandatory. Approximately 50% of our lease deals involve cither no deposit or one modified so that it is favorable for the chiropractic tenant. Most lease deals state that they require a security deposit. Well, arc you a security risk? Maybe so. but if you arc a seasoned chiropractor renew ing your lease, be aware that The Lease Coach often gets chiropractors a full refund on their deposit when negotiating a lease renewal. Select the Best Lease Length: While a five-year lease term is still standard (seven or ten years in some cases), it is not necessarily the best term for your practice. Three years, or even one > car. lease renewals may be better for some tenants. The agent, motivated by a greater commission, will want you to sign the longest term possible, but the landlord may be flexible. Take the term that is best for your chiropractic practice. Create Competition for Your Tenancy: Even if you don't want to move, shop around for other possible locations and collect written Offers to Lease. You don't want to hand your renewal over to your landlord on a silver platter, and doing this shows that other landlords arc pursuing your tenancy. The reason that The Lease Coach typically is able to negotiate a rent reduction on a lease renewal for a chiropractor is because we introduce decoy locations, thus making the landlord nervous about possibly losing you as a rent-paying tenant. For a copy of our free CD. Leasing Do's & Don'ts for Chiropractic Tenants, please e-mail your request to DaleWillerton@ ThcLeaseCoach.com. Dale Willerton and JeffGrand field - The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Xegolialing Commercial teases & Renewals For Dummies (Wiley, 2013). Got a leasing question? Xeed help with \vur new lease or renewal? Call 1-800-738-9202, e-mail DaleWillertonaTheteaseCoach.com or visit www.TheteaseCoach.com.
