2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Business is a risk. In most cases, entrepreneurial activity is based on renting commercial or industrial premises. But at some point, the cost of rent becomes a burden - as they say, it’s a pity to quit, and there’s no way to drag it further. Moreover, the economic situation in the country is constantly changing, and not for the better.
The first thing that comes to mind for every tenant is to reduce the rental rate. Indeed, in some cases, such measures can save the financial situation, but the most important thing is to be able to convince the landlord.
Ways to fight for rent reduction
First of all, the tenant should not think that the owner of the premises is interested in his property being empty. Letters to the landlord about rent reduction should never be neglected - this method of negotiation can be much more effective than verbal conversations.
Conditionscontracts
There is practically no doubt that at the time of signing the contract, all tenants did not think much about the fact that conditions may soon change and entail the impossibility of paying for the transaction. Nevertheless, re-read the entire contract, it may still contain conditions that will allow you to influence the landlord.
Change the contract currency
If the contract was signed a long time ago and on terms of payment in foreign currency equivalent, then in this case the tenant should make every effort to switch to ruble relations.
A sample letter for rent reduction in this case would look like this:
… Our companies have been cooperating for many years, and we have never violated the terms of the contract, paid the rent on time. However, the economic situation in the country has changed a lot, the exchange rate rises almost every day and has changed in relation to the rate at the time of the conclusion of the contract by _% Store maintenance becomes unprofitable.
Based on the foregoing, we ask clause 3.2.8 of the lease agreement… to be amended as follows (that is, change the currency of the agreement to rubles)…"
Alternative rental options
Get information about what the cost of premises in the area. Surely there will be several options similar to the one you have for rent and lower in price. This is especially true in cases where the lease agreement has been extended for a long time, and accordinglyfees go up every year.
A sample letter requesting a rent reduction in this case could be written as follows:
“… Thank you for your long cooperation, but I ask you to revise the rent downwards. In a neighboring shopping center, similar premises of the same area are leased at a price 20% lower on the same conditions. The traffic near the outlet is the same…”.
Trading
Never forget that it is much easier to prevent a rent increase. Most likely, the agreement provides for a condition under which the landlord has the right to review the rental rate once a year, once a quarter or every six months. The tenant in such a situation should not be silent, and before the date when the landlord can make a proposal for an increase, write his own "complaint" letter.
A sample letter for rent reduction in this case might look like this:
“… Due to the difficult economic situation in the country and the decrease in purchasing power, I ask you to reduce the rent by 10%. In turn, we undertake to continue to fully and timely fulfill all the terms of the agreement…”.
Ideally, sample letters to landlords requesting rent reductions should include a slightly higher percentage than what the landlord is en titled to put in a request for an increase.
Preventive measures
If you onlyIf you are going to enter into a lease agreement, then in order not to write a sample letter about rent reduction soon, find out what the owner of the premises wants.
Most of the time he wants to get rent for several months. In this case, get a guarantee that for, for example, 2 years, it will not be revised. Perhaps the owner of the premises does not want to constantly look for new tenants, so guarantee him that you are not going to leave the location for 2-3 years or more.
If the property is not in the best condition, then in order not to write a sample letter to reduce the rent over time or not to require repairs, arrange with the landlord to carry it out on their own, but compensated by the fee. Naturally, get guarantees that in this case the price of the contract will not be revised, for example, due to the fact that the owner of the premises will receive integral improvements to the premises, which will remain with the owner even if the tenant leaves.
The tenant must be demanding of the landlord and negotiate tough. So, the lack of parking or the Internet is a huge minus. If the windows overlook the wall of a neighboring building, then this can also be regarded as a reduction factor when determining the rental price. Therefore, the letters to the tenant about the reduction in rent, the samples of which we have provided in the article, must be reasonable and clearly express the requirements.
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