By Dale Willerton
In previous LookingFit.com articles, I have been pleased to share a number of leasing Q and A’s from tanning tenants. My mailbag is often full to overflowing with many concerns from prospective tanning tenants to more established salon owners, and I am delighted to share what help I can and advocate, when necessary.
For this month’s article, I thought I would switch things up a bit and share a number of questions for you to ask a prospective landlord. The questions you ask and the answers you receive should greatly influence how you negotiate your lease. Play it smart and be aware before committing to a long-term lease. Here are a few of the many questions to ask:
Who is the landlord? You can’t always determine this just by looking at the building. If the landlord is an institutional owner (for example, a pension fund or life insurance company), you will certainly negotiate the deal differently than if the property is a family operation owned and managed by a doctor and her son, where the doctor operates her medical practice right on the premises. Different types of landlords will have distinctive goals in owning their property. You need to plan your lease-negotiating strategy depending on the landlord type – and also adjust your expectations accordingly.
Where is the landlord physically located? A local landlord is typically more accessible, which makes dealing with him far easier. One of my tenant clients was trying to meet with his landlord – a doctor aged 70 years old – who not only continued to practice at his leisure, but also enjoyed sunny holidays and was often not around. Obviously, this made it difficult to schedule a personal meeting.
Is the building for sale and, if so, when? Building owners looking to sell their buildings will have different motivations with prospective tenants. Also, consider that you may like the current landlord but dislike the new landlord. If you have a lease renewal coming up and the building is for sale, consider that landlords do not buy properties with the intention of giving rent reductions to tenants. Just the opposite is true – new landlords will seek higher rents.
Who is the property manager? Try to ascertain the caliber of the property manager. Is he/she a certified property manager (CPM), a real property administrator (RPA) or someone with little experience? You will obviously want the highest qualified property manager possible.
Who were the last two tenants to move out of the building? Once you have the answer to this question, you will need to determine its implications. Did the tenants move up the street to better buildings, or did they go broke because of poor traffic to the building? Did the owners sell lucrative, thriving businesses or did they simply retire?
You may feel uncomfortable asking these questions; however, landlords and property managers are typically open to providing answers. As a tanning tenant, you have every right to know the entire picture. I strongly recommend that you type out these questions as a worksheet (or print out this article) to refer to before negotiating (or even renegotiating) begins.
• Got a leasing question? Like a complimentary copy of Willerton’s CD, “Leasing Do’s & Don’ts for Tanning Salon Tenants”? E-mail dalewillerton@theleasecoach.com and see the answer in an upcoming LookingFit.com article.
Dale Willerton is The Lease Coach – a lease consultant who works exclusively for tenants. As an ITA member, he has spoken at many North American tanning conventions and will be presenting at Smart Tan Downtown (Oct. 14 – 15, 2011 in Nashville). Dale is the author of “Negotiate Your Tanning Salon Lease or Renewal.” For more info, call 800.738.9202, e-mail dalewillerton@theleasecoach.com or visit www.theleasecoach.com and/or www.helpuleasetanning.com.
