Things to Consider When Weighing the Decision to Buy Your Property From Your Landlord. Part Three!
Do you want to buy your building from your landlord? Longing to get better control of your costs?
After interviews with over 100 thriving businesses in the past year, and throwing in some business-school negotiations tips, here is how I suggest you purchase space from your landlord. This time, I focus on offers - proposing them and persevering!
#1: Propose:
● Put your offer in writing and let the landlord know that this does not affect your current lease.
● Make it as easy as possible for the landlord to say yes. Offer one simple solution, which you are prepared to negotiate, but which doesn’t demand too much decision-making. Imagine your landlord saying “this is reasonable, you’ve thought of everything”.
● Make your offer, with a price, conditions and a deadline, in a formal document, and justify these with an informal letter or conversation.
● Make your offer 5 - 10% lower than what you are actually willing to pay, in order to negotiate upwards in the likelihood your landlord asks for more.
● Tenants have the advantage of knowing the building: remove conditions if you have full understanding of the property already.
● Typically, offers are more attractive if they have larger down payments, fewer conditions, and a reasonable time frame. Knowing your landlord, build these into your offer if you can.
● Use a real estate agent and get legal advice - you’ll save money, legitimize your offer and avoid risks
#2: Persevere:
● If they don’t say yes, they might say “not now”, which could be a step ahead from where you were before.
● Watch and prepare reminders if your landlord’s situation changes or new selling signals present themselves.
● Reconsider those alternative properties you found… moving might be a good idea, if you can be the owner.
Call me if you’re ready and considering to buy-out your landlord. I would love to help you talk through your options, and share additional market information with you.
Here’s wishing you storefront success,
- Matt
