July 12, 2024

Commercial Rent Abatement: Top 5 Things You Need To Know

4 min read

When opening a business, you are strapped for cash and need capital for just about everything. But one of the biggest liabilities for a newly-started business is paying the rent for the commercial premises you hire. However, it’s time you experience relief without paying any rent! Want to know how? Let’s dive in! Have you heard of rent abatement? Well, rent abatement or free rent refers to the period when tenants are not responsible for paying rent. However, you can occupy the premises and carry on with your business operations based on how you negotiate the free rent period.

When searching for office space for rent Kelowna, you may be entitled to concessions that you need to negotiate to get a better deal. The free rent concession is available based on how active the market is and the type of space you need to negotiate. How do you receive the best deal on free rent? One of the major problems is that, most commercial tenants are unaware of what they need to ask or feel nervous while asking for it and pay the rent eventually. When touring office spaces and meeting the landlords, it is mandatory to ask for negotiations to ensure that you are eligible for free rent concessions.

Read the points below before steering ahead to get the best deals on commercial space.

·  Justify why you need free rent

All landlords expect the tenants to get commercial space for rent Kelowna? So, you need to state why you want to stick out of the protocol as nothing goes without reason. For instance, you may own a seasonal business and start operating it during that time of the year when the economy is rather slow. So, that may be a good reason to request free rent concessions. You need to do a good deal of research on the situations when tenants get free rent from the landlord. If a landlord offers free rent for three to four months, you need to ask for it when leasing a commercial space in the same location. The existing tenants may have already proved to the landlords that leasing the commercial space for free rent is not a risk. Similarly, when similar properties in the same location are offering free rent, you need to negotiate for the same.

·  What to do at the first stage of the negotiations?

Rent abatement or free rent requires an expert to intervene for commercial leases in Kelowna. In this case, it may be Emil Anderson Properties, one of the best names to reckon with when negotiating commercial leases. They also offer good deals on Tower Ranch homes for sale for those keen to invest in residential projects. Usually, the expert you hire needs to send a letter of intent. If free rent is one of the major considerations plaguing you, it is necessary to take up the case as early as possible to help you get on a better platform. If you go back and forth with the terms of negotiations several times and fail to mention the free rent period, the landlord may change the terms of the agreement completely and you may have to start over and over again. The earlier you ask for free rent, the better you leverage the deal.

Also Read: Buying Real Estate Tips

·  Understand the build-out period

Tenants need to pay rent during the build-out phase and negotiate for at least 60-120 days during which no rent becomes due but it is not free rent.

· Base rent and operating expenses or free rent?

You need to research the market and the landlords in specific locations when asking for free rent for an office space for rent Kelowna. You may pay a base rent and operating expenses or only base rent. Start from scratch and work out a deal you prefer. If they do not agree to abate, you can ask for free base rent.

·  Ask for more than you need

When negotiating for free rent, try to avoid asking what you need. Ask for more than you are deemed to get and end up receiving the basis concessions. However, you need to make intelligent offers based on market research. If the landlord is not ready to give free rent due to apprehensions about your business wrapping up soon, you need to counter this offer and take the free rent for a period. If you are planning to make it big in Kelowna commercial real estate, begin your first business operation with free rent. If you want to get success on the clause of free rent negotiation in Fraser Valley & Kelowna, talk to an expert today and get the best deals.

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