Renewal Negotiation

Your Leasing Co. specialises in handling renewal negotiations on behalf of Tenants. We have negotiated more than 1,000 lease transactions over a period of 25 years. We understand the Landlords starting position in the negotiation and we bring the most current market data, combined with our industry knowledge and experience to unemotionally negotiate the best renewal deal for our clients. We understand the commercial value that you bring as a performing Tenant and what this means to a Landlord.

A lease renewal is a natural break in the legally defined terms of a lease. Most Tenants simply sign and renew at the passing rent, not knowing if the current rent is higher than the market. A renewal is an opportunity to review the rent with the Landlord and realign the passing rent back to the market.

Nearly all leases have an automatic annual increase clause. This means that your rent will increase by approximately 3-5% every year. It doesn’t sound like much, but these increases compound on the previous year and equate to an increase of 27.63% over a 5 year term based on 5% annual increases.

So, if you just renew your lease at the passing rent, the automatic rent increases just keep on going. By the end of the first renewal period in the 10th year, the increase will be 62.89%, based on compounded 5% annual increases. In the second renewal period at the end of the 15th year it jumps to 107.89%.

Are your sales growing at the same pace?  

Tenants that just sign a lease renewal without checking the current market rent are accepting a risk of incurring an unnecessary and significant cost for the convenience of simply signing a renewal.

Landlords know this…. This means that there is a significant risk that a large proportion of Tenants are overpaying and not understanding that they have real value as a sitting Tenant at the negotiation table.

We work 100% for you and level the playing field when it comes to negotiating with your Landlord.

The process we utilise to recalibrate the rent back to market when it’s time to renew is as follows:

1. Information Gathering / Needs Assessment

This involves meeting with our client to understand their strategic objectives for the business and if it is appropriate to renew the lease in its current form or to renegotiate to market. It also involves getting an understanding from our client with respect to how the business has been performing in that location and the preferred terms to aim for in the negotiation.

2. Market Rent Appraisal

This step requires us to use our industry knowledge and expertise to investigate the local market by identifying comparable sites, as well as understanding the asking and recently achieved rentals, as well as leasing incentives being achieved in the area.

3. Evaluation and Determination

Next, we review recent sales performance information provided by our client, together with the evidence gathered during the market rent appraisal stage to determine the optimal leasing outcome for calculating a proposed renewal rental.

4. Initial Recommendation

We then calculate the current occupancy ratio (using current sales and rental information) and compare that to industry averages.   We then apply the market rent to the current sales to see what the occupancy ratio would be.

5. Renewal Negotiation

The next step is to communicate with the Landlord and / or their agent and commence discussions in relation to negotiating the renewal terms with an objective of achieving the best possible commercial result for our client, keeping in mind the objectives of the assignment.

6. Documentation

Once all terms have been agreed, this final stage involves the review of all documentation provided by the Landlord or their agent, to ensure that they are consistent with the terms agreed during the negotiation stage.

Interested in finding out more?

Call our FREE phone hotline 1300 356 702.

Hear From Our Clients

I approached Mike for some advice on how to approach my landlord regarding my rental situation and the information he provided me was fantastic.

He looked at my turnover situation and gave me clear and concise advice as to how to approach the landlord and he also prepared a spreadsheet as to how much rent I needed to pay the landlord.

Mike also provide me information as to the process if the landlord was not willing to work with me.

In this difficult time for all small business when the last thing you want to worry about is the rent you need to pay you landlord. Mike’s understandings of the code of conduct and measured approach was second to none.

The time and work Mike saved me was amazing!

Anthony Cavallaro
Managing Director
Ray White City South

Your Leasing Co assisted me in March 2020 to renegotiate my lease. I’ve always gotten on ok with my landlord, however I felt quite intimidated and hesitant to ask for rent relief/reduction at the start of Covid.

Mike at your leasing co walked me through it step by step in a patient and simple manner. He even helped me draft the email.

I’m pleased to say that through Your Leasing Co’s coaching and structured process, I no longer have any hesitations to present a strong case to my landlord for relief/ reduction of commercial rent.

Victoria Butt
Managing Director
Parity Consulting

Kelly Cunningham originally helped us with a rent re-negotiation on our business premises some years ago. Then when the next review was due, she gave us advice that we could do substantially better by not renewing the lease. We took her advice and asked her to locate an alternative premise that would suit us in all respects.

The result of the search Kelly did for us and her negotiations with the new landlord on our behalf was that we were able to relocate the whole business to more appropriate premises with everything we needed including much better staff and client parking. Plus, the best thing of all - Kelly secured a much lower rental cost for us.

I would have no hesitation to engage Kelly’s services again for any help with our commercial premises leasing. I highly recommend her to anyone needing advice with lease terms, negotiations with landlords or location of alternative commercial premises.

Devon Barnes
Lindfield Speech Pathology & Learning Centre

Amanda and I would like to thank Kelly and Mike for the fantastic and professional job they did for us in extremely testing times. To run any business, we all face difficult situations, but to try to fund a Beauty Clinic in Melbourne during lockdown is something of another story. Kelly and Mike were always hard but fair to our Landlord and all parties were satisfied in the end.
Thanks again

Amanda and Peter
Peaches and Cream

Kelly from Your Leasing Co was an amazing help. Not only was she thorough with going through what I needed for my business in terms of leasing, she was so informative and knowledgeable. I was stuck with what I needed for my business and the options she was able to give me, helped me have more clarity in my leasing and where I stand with my Landlord. Thank you very much for the time you took to read go through my lease and take my calls and emails out of office hours. Will definitely recommend Kelly and Your Leasing Co and would use them in future where needed. Thanks Kelly.

Toni Katsaros
Elysian Hair Beauty Spa

Kelly and the Leasing Co Team were amazing to deal with. We were referred by an industry leader and the word of mouth certainly did not disappoint. Kelly worked tirelessly for us to find the perfect site. There was on going consultation to ensure that we were on the same page and navigating to find the ideal outcome. Kelly was the go between working her magic to produce the best possible outcome by negotiating and securing an incredible offer for us. We would highly recommend Kelly and Your Leasing Co. An absolute pleasure to deal with.

Esther Trapp
Urban Skin Spa

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