Your Most Important Negotiation

Listen to audio recordings on how to Negotiate a Lease.

No single element has to be more right than your rent. Getting locked into an expensive lease straps a school’s cash flow every 30 days. 

Rent is presented either monthly or annually. In Florida, a 3,000-square-foot space at $10 per square foot annually may rent for $2,500 per month; 3,000 x $10 = $30,000 ÷ 12 months = $2,500.

A similar space in California may be presented at .83 per month per square foot.; .83 x 3,000 square foot = $2,499.99. As my dad always said, “It’s the same thing, only different.” 

First, an important note: You will never be paid more in your life than when you negotiate. For instance, you are buying a widget. Instead of paying the sticker price of $100, you say, “Will you take $80?” He says, “I’ll take $90.” In the few seconds it took to do this, you made $10. Let’s say it was a 15-second exchange; $10 for 15 seconds is the equivalent of $2,400 an hour. 

So let me repeat:

You will never be paid as much as when you negotiate a price down. 

How do you negotiate rent? After the initial walk-through, get an offer sheet from the landlord with his offer to you. Keep the entire negotiation process in writing. 

If, in phone conversation, you agree to a new point, confirm it in writing immediately to the landlord. It doesn’t exist if it’s not in writing. Don’t assume anything; get it in writing. 

The most important two words in business are “just ask”. You will never earn more money in a shorter period of time than when you just ask. 

In the leasing business, everything is negotiable, but only if you just ask. The answer is always no until you just ask. 

Walk-Away Power

This is the most important aspect of negotiation. You must convey to the salesperson that you are perfectly willing not to purchase, and you will walk out unless you get a good deal. 

Without this, any decent negotiator will hold his position, because it’s clear you are going to buy anyway. In the car business, if the frustrated buyer storms out of the sales office to get in his car and go home, the salesman will chase him down. 

I even had one salesman step between my car and me to keep me from opening the door. I had to either laugh or choke him out. 

Either way, the deal always gets better at that point. If they let you go, the deal was as good as it was going to get that day. 

Either way, never get emotionally attached to a potential purchase. Even if you do, don’t show it. 

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