Your Toronto Office Lease Renewal

Toronto Office Lease Renewal – The Tenant’s Secret Weapon

Many Toronto Commercial Real Estate tenants are unaware of the power they have when renewing a lease particularly if they have been prompt in paying their rent and no trouble to the landlord in any way.

But many of my clients have saved tens of thousands of dollars at lease renewal time and renegotiated such things as the return of security deposits, removal of clauses that could affect them in the long term and negotiated large sums of monies for renovations.

In fact, I saved a Harlequinn books $5 million dollars on a lease renewal over what the landlord had originally proposed.

One common problem is that landlords become friends with tenants and this is a good strategy for the landlord.

There is nothing wrong with this as increasingly landlords are realizing the value of a good tenant and they have programs designed to keep tenants contented and well serviced.

When it comes to renewal time, it makes it psychologically difficult to negotiate effectively with these “nice guys” and tenants leave money on the table and give up valuable negotiating of lease clauses.

It is not just a new lease that needs negotiation. Your existing lease can be improved so that clauses can be added to protect your business or deleted that may cause you harm. Often tenants have more power on lease renewal than they did when they were new tenants.

If you are renewing a lease it is a good strategy to create competition for your lease even if you have no reason to move and don’t want to do so.

This is particularly important. One of my clients, mutual fund company chairman told me he had been in his building for 16 years and had no desire or reason to move his premises and just wanted the best rental rate he could get in his existing space.

I told him he had to create competition for his lease and within 6 months he was in another building at considerably reduced rent when the new landlord made him an offer he couldn’t refuse.

If you have paid your rent and created no unnecessary problems for your landlord he wants to keep you and is willing to give you concessions he wouldn’t give a new tenant.. You have negotiating power, whether you know it or not.

This is by far the greatest mistake Toronto Office Lease Renewal tenants make which is really one of ignorance. They just go the landlord and tell him they want to stay.

The second biggest Toronto Office Lease Renewal error is treating the landlord or his representative as a friend or fearing reprisals if too good a deal on a renewal is negotiated. This is a mistake as a landlord will never do a deal he can’t live with and will not hold tenants back from getting favors because another lease will be coming up in the future and he wants your tenancy.

The third biggest Toronto Office Lease Renewal error is doing it yourself. Most tenants do and this is a big financial mistake. There are literally tens of thousands, hundreds of thousands or even millions of dollars to be saved in lease renewal negotiations if you hire a good tenant consultant to represent. I know because I’ve been able to achieve this for my Toronto Office Lease Renewal clients. Usually this comes free of charge to the tenant because landlords are willing in most cases to pay someone to renew a tenant rather than losing that tenant to another building. A skilled Toronto Office Lease Renewal lease negotiator knows what is negotiable and how to get it for you. Contact Us Regarding Saving Money on a Toronto Office Lease Renewal