Here are the things a tenant needs for a landlord in negotiating a renewal of an existing lease on favorable terms for the tenant:

1. A past history with the landlord for being a good tenant in terms of meeting all of the terms and conditions of the lease including paying the rent and other occupancy expenses on time.

2. A knowledge of the market rents for comparable restaurant space.

3. In negotiating an existing lease the tenant should negotiate the lease as far in advance as possible from the expiration date of the lease. The closer the tenant waits to the expiration date of the lease the more difficult it could be for the tenant to negotiate favorable terms, as time increases usually rents increase. Also the landlord knows that if the tenant wants to continue his business at the same location, the landlord has an advantage over the tenant in the negotiating process. If the tenant waits to the end of the lease to negotiate lease extensions and if he can’t come to an agreement with the landlord, the tenant could be forced to relocate his business which could be economically prohibitive. However, if the tenant is in good standing with the landlord, the tenant will have some leverage with a landlord in renewing his lease. This is because most landlords would rather work with a known quantity than be at risk with a new tenant and with possibly no rental income during the period the old tenant leaves and the new tenant comes in.

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