If the current economic times have hit your business hard, you are not alone. Numerous individuals and businesses have found themselves carefully tracking profits and losses, and you may be among the many feeling the tight grip of financial uncertainty. Though you believe that your business can continue, you know that some changes need to occur.
One change you may have on your mind is restructuring your commercial lease. The amount of rent you pay to utilize your current space could put you in a bind, but you know that you could face penalties for breaking a lease early. However, restructuring could allow you to remain in your current space without completely breaking the lease, but your landlord would have to agree to new terms.
Negotiation is key
Though you feel like you have strong reasons to restructure your lease, your landlord may not immediately see the issue from your side. After all, your landlord wants to make money too. So most likely, your landlord will not simply hear your request and immediately agree to restructure your lease terms. Fortunately, you can try to negotiate to reach favorable outcomes for both of you. Some tips for negotiation include the following:
- Have a plan for new terms in mind. If you request a restructure without any idea of what the new terms should be, your landlord may not take your request seriously.
- Consider the likelihood of your landlord consenting to the restructure. In particular, consider the loan your landlord has for the commercial space because a newer loan could mean that a lender has more control over the space than the landlord.
- Show your landlord that the restructure could benefit both of you by explaining that a rent reduction would allow you to continue occupying the space, preventing your landlord from having a vacancy generating no rental income.
- Determine whether a restructure will realistically help your situation. If rent reduction or other changes will not help you get out of financial trouble, it may not be worth the effort.
Many people think that because their commercial leases are legally binding documents that they are stuck with the terms they have. Luckily, that is not always the case. With willing parties on both sides, lease restructuring could prove useful to all involved.
Not feeling confident?
If you do not feel confident in your ability to successfully negotiate a lease restructure, you do not have to feel without hope. You could enlist the help of an experienced Florida attorney who could help you approach your situation confidently and assist you with the negotiations process.