DAYSPA is the business resource for spa & wellness professionals! Each issue covers the latest in skin care, spa treatments, wellness services and management strategies.
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[ 60 ] • # dayspamagazine • december 2017 management workshop by Lisa Greim The Real Deal Don't let a proposed rent hike send you into a panic. Instead, learn how to renegotiate your lease before you re-sign on the dotted line. © GETTY IMAGES I t's the moment all retail tenants dread: The fat envelope arrives from your landlord, containing pages of dense legalese that boils down to a big rent increase and a tough decision—stay or go? If you, your staff and your clients love your space and the numbers work, it may seem like a no-brainer to shrug your shoulders and just accept the higher rent. But a smart business person knows how to negotiate all of a lease's elements to create a win-win for both the spa and the property owner. By playing the game, you could end up with lower rent, more perks and even cash for remodeling—not to mention a landlord who's happy to have you as a tenant. Leasing consultant Dale Willerton of The Lease Coach reminds spa owners of one critical fact: In lease negotiations, they are the customer. A good tenant is worth a lot of money to a building owner, and renewal terms should refl ect that. "Tenants have a lot of power; they just don't know it," says Willerton. "They forget to make the landlord re-earn their tenancy." Willerton and partner Jeff Greenfi eld wrote Negotiating Commercial Leases and Renewals for Dummies (Wiley, 2013), and their business, with offi ces in the U.S. and Canada, works with tenants to fi nd the perfect space and negotiate the most favorable lease terms. "It's important that the landlord sees the tenant as an asset," adds Amanda O'Connor, owner of three Soleil Salon & Day Spa locations in Aurora and Naperville, Illinois. And if they don't, it may be time to move on. Ultimately, it may be worth hiring a leasing pro who can look at the facts and fi gures without an emotional attachment to a particular space or location. But even without their help, you can still avoid the following four common pitfalls come renegotiation time.