The Keys to Winning Landlords…
The starting point to winning over a landlord is to address the tangibles versus the intangibles of the negotiation. The partnership goes beyond just the terms and rate. It is natural to focus on the tangible deal terms of the assignment, but a landlord must first ask, “has the Tenant been a good steward?” The rate, terms and financial stability for a new tenant lease are very important, but there is more….the intangibles!
The intangibles are standard expectations, such as:
- Pays rent on time
- Takes care of the property
- Reports damages right away
- Acts in good faith and uses the property for its lawfully designated use only
- Appreciates and expresses gratitude with any maintenance repairs and upgrades
- Is a good neighbor to other tenants
- Keeps demands reasonable
- Communicates and is responsive
- Is cooperative in finding a new tenant when the time comes
Bonus: Take initiative in this process!
The second key part of a landlord-tenant negotiation is communication. Be clear and concise with the correspondence sent to the landlord for assignment or sublease. Equally as important, communicate the expectations in the new assignment to the new Tenants. To help build a great relationship with the Landlord, reassure and explain to him/her what has been communicated to the new tenant. Some common topics to go over are:
- Competitive Rental Rates
- Longer Lease Term
- Guarantors on the Lease
- List of Intangibles
- Past Landlord References for Proposed Tenant
At the end of the day, as a Broker, you want your tenant to take care of the place as if it were their own, and the landlord to treat the tenant with respect. This is why maintaining a good relationship with your tenant and landlord is crucial. All successful relationships require hard work, flexibility, and trust.
This Commercial Minute Blog post was posted by Mónica Startari.
Mónica Startari joined the Transworld Commercial Real Estate team in January 2020 as a Sales Administrator. She received a Bachelor’s Degree in Marketing and International Business from Duquesne University in Pittsburgh, Pennsylvania and has 15+ year’s experience in resort marketing, event planning, and adventure sports race directing (including for the Pocono IronMan, Rev 3, Challenge America and other local race events). Before joining Transworld, Mónica had been managing sales, marketing, and event planning for the Shawnee Craft Brewery’s resort taproom. She and her family made the big move from Pennsylvania to colorful Colorado in the Fall of 2019 and they couldn’t be happier with the transition to the Colorado lifestyle! Outside of work, Mónica enjoys running, yoga, hiking and hitting the slopes with her husband and two kiddos.