Being a restaurant owner can be very rewarding, but it’s also challenging in ways that many other business owners won’t experience. Not only do you have to keep the business running smoothly, but you also have to deal with property management companies that don’t always have your best interests at heart. That’s why when you find the right property, you need to take all of the steps possible to ensure that you get the lease terms that are best for your business.
Here are seven ways to make sure you get the best deal on your restaurant lease.
1) Location, location, location!
The first step in negotiating a restaurant lease is finding the right location. The best way to do this is by working with a real estate agent who specializes in commercial properties. Once you’ve found a few potential locations, it’s time to start negotiating! Here are seven tips to help you get the best deal
2) The landlord wants you as much as you want the space
- The first step is to do your research. You should have a good idea of what similar properties in the area are renting for. This will give you a baseline for what you should be paying.
- Once you have an idea of what the going rate is, it’s time to start negotiating with the landlord. It’s important to remember that they want you as much as you want the space, so don’t be afraid to ask for what you want.
- One of the key things you’ll be negotiating is the length of the lease. The longer you can commit to, the better deal you’re likely to get.
- Another important thing to negotiate is who will be responsible for paying for any necessary renovations or repairs.
3) Let them compete for your business
- Know your credit score and be prepared to discuss it with potential landlords.
- Research the market rent for similar properties in the area.
- Have a clear idea of what you need in a space and what you’re willing to compromise on.
- Be prepared to negotiate on things like length of lease, build-out allowances, and common area maintenance fees.
- Don’t be afraid to ask for what you want – remember, the landlord wants to lease the space to you just as much as you want to lease it from them!
- Get everything in writing, including any verbal agreements made during negotiations.
4) Focus on build out costs, not rent
If you’re looking to open a restaurant, one of the biggest costs you’ll incur is the build out. And while it’s important to negotiate a fair rent price, don’t get so caught up in haggling over dollars that you forget about the build out. Here are seven ways to make sure you get the best deal possible on your restaurant lease
5) Know what your target deal looks like and don’t settle until you get it
If you’re looking to lease a space for your restaurant, there are a few key things you’ll want to keep in mind to make sure you get the best deal possible. First, know what your target deal looks like. What are your must-haves? What are your willing to compromise on? Once you have a clear idea of what you’re looking for, don’t settle for anything less.
6) Have an attorney review your lease before signing
Before you sign a restaurant lease, it’s important to have an attorney review it. Here are seven things to keep in mind when you’re negotiating your restaurant lease:
- Negotiate length of contract
- Request rent payments be made monthly instead of quarterly
- Request landlord agrees to update bathrooms or kitchen at their expense within six months of opening
- Require landlord to install a grease trap
- Negotiate and decide who pays for landscaping, snow removal, and other routine maintenance
7) Don’t be afraid to walk away
- Don’t be afraid to walk away from a bad deal.
- Know your bottom line and what you’re willing to give up.
- Don’t hesitate to ask for what you want.
- Be prepared to compromise.
- Listen carefully and be open to the other person’s suggestions.
- Keep an open mind and consider all options.
- Most importantly, trust your gut instinct.