Practical Benefits of Rent-Free Periods For Your Business
When renting an office space for your business, it can take up a large amount of your expenses. A rent-free period in the beginning of a new lease, or when you sign your lease renewal, is a great way to give you some money to invest back into your business.
There are many practical benefits of rent-free periods, for both the tenant and landlords. Here are some of them!
Free Up Cash Flow
Perhaps the most obvious benefit of rent-free periods is the fact that it frees up cash-flow for your business. With this extra money, you can focus on expanding and growing your company.
The possibilities are endless when it comes to reinvesting back into your business, and ultimately you will know where that money is best spent.
Here are just a few of the potential uses for that extra money.
Depending on the office space you choose and your business needs, some fit-out work might be required. With a rent free period you can use that money to invest in a high quality fit-out for your new space.
The fit-out could include things such as;
- Air conditioning
- Plumbing and bath rooms
- Additional mechanical, IT and electrical elements
- Office rooms
- Blinds and window furnishings
- Kitchen areas
It will really be up to what your business needs, but this is a great potential benefit from a rent free period.
A new office space may require a lot of new, expensive equipment. With a rent-free period you will free up money to invest in high quality equipment such as computers, printers, or any other type of machinery your business needs to run efficiently.
You can even invest it into quality of life improvements such as kitchen appliances for staff lunch rooms, and comfortable ergonomic chairs.
Another great way you can invest that money is in improving your product or the service that you offer. You can invest in more research and development for your product, or in high quality parts.
In the long run, this investment has the potential to really improve your businesses success overall.
With more cash flow, you might be able to invest in new staff for your business. Whether you need more help with administration, sales or industry qualified employees, this money might help you hire some new staff.
Additionally, you could offer your employees more incentives, or promote someone to a full time position.
Help Sustain Tenant and Landlord Relationship
Another benefit of rent-free periods, especially for lease renewals, is to help maintain a good long term tenant and landlord relationship.
Landlords can benefit a lot from high quality long term tenants, so they may be willing to offer a rent free period for a lease renewal so they can keep a high quality tenant in their space.
This relationship should be defined by mutual respect, so lease incentives such as these at the beginning of a new agreement, can help build up a good relationship. They will be profiting a lot from their tenant long term, so a rent free period at the beginning is a good benefit for the new potential tenant.
Contact Englander Principal
If you are looking for help with negotiating a rent free period for your next lease or lease renewal, then you should contact Englander Principal.
With a worldwide success rate of 95%, Englander Principal are proven experts at negotiating the best lease terms for their clients.
We work on a No Win, No Fee basis. We take only a 15% commission on a successful case. You have nothing to lose when you work with us.
If that sounds like a good deal, then book your FREE consultation here, and get ready to save money on your next commercial lease agreement.