When we examine our expenses looking for ways to cut back we tend to skip over fixed costs like real estate leases. Not so fast there my fellow cost cutters.
Landlords are struggling in this economy, too, which makes it a perfect time to get a great deal on your lease. If you agree to commit to a few more years, your landlord is likely to extend your lease at a lower rate. It’s a win-win for both of you. Locking you in to a longer lease term gives your landlord some leverage with lenders (and we all know things are tough with lenders right now). Besides your lease term, are there other provisions that you’d like to negotiate? If so, now is the perfect time.
What if your not willing to commit to a few extra years in exchange for a lower rate? That’s a tougher sell. Maybe you’re in financial trouble? A landlord would rather keep you at a lower rate than have you bail entirely if you can’t stay open. Sure they can come after you for the remaining rent but they will quickly appreciate that coming after you at that point may be futile.
Maybe you’re not quite ready to sneak out in the middle of the night but you really are struggling. How about approaching the landlord with a proposal to defer rent. You pay less and it gets added to the back end of the lease. Maybe the back end portion of the rent is contingent of your financial situation improving. You could provide financial documentation in exchange for the rent reduction/deferment. If you can afford to pay, you pay. If you can’t afford to pay then the landlord agrees to let it go.
Ultimately, the only limitation here is your creativity. Put your family law negotiation skills to work on your own behalf. Be a creative problem solver and approach the landlord with your ideas.
