Rent Negotiations

On this page you will find tips for how to pitch to a landlord, types of rent negotiations you may be able to make, landlord-tenant matching websites and types of landlords.

Pitching to a Landlord

Tip One:

Present a proposal to the property owner outlining what you will do in the space for rent and give some background to your Pop Up.  Be prepared to share your business plan with the property owner. This helps to build your credibility as a business owner and share your vision. If you do not have a business plan you may use our  business plan template. A business plan will help you to understand your budget, target market and create an action plan to follow.

 

Tip Two:

Pitch the Pop Up as a win-win situation. Outline the key benefits the property owner will receive from the pop up. Some examples of benefits are: a cleaned retail space that is staged for potential full-time renters to see, increased foot traffic to the location, and subsidized income for the landlord.

 

Tip Three:

Remind the property owner  that by having a Pop Up they are able to receive rental income opposed to an empty space! Short term tenancy can help to offset costs and stage the space for full-time rental. In some cases, the Pop Up loves the location and may want to take on the lease space full time!

 

  Tip Four:

Give the property owner time to review your proposal and business plan. They may not have had a Pop Up before and need to do their own assessment on the benefits it will bring them. However, you should follow up in a few days so that you may continue on your search for a location.

 

Shopify also has a great resource to pitch to your landlord, and negotiate your rent.


Rent Negotiations

The rent negotiation is between the landlord and tenant. If using an online resource to match with a landlord, they may already have a rent negotiation system in place. If approaching a landlord in person, you may be able to negotiate the costs and rents more. Examples of rent negotiations (these may be on their own or combined):

Subsidized Rent: Pay a reduced rate of the regular rent. This may be based on number of days you will be there or the costs for the empty space.

Percentage: Pay rent through a percentage of sales. Or have this combined with a subsided rent and a percentage of sales.

Barter System: Trade products or services in exchange for subsidized rent.

Tip: Make sure you do your research on the area that you are hoping to rent in. Try to get an understanding of what other businesses are paying for rent and this will help you to better understand the type of rent negotiations you may approach the landlord with.

Tip: Use real estate resources such as realtor.ca to find locations to rent or lease and to research the going asking lease rates.

Tip: Do some research and learn to understand the jargin such as TMI and how to calculate price per square foot.


Landlord- Tenant Matching Sites

There are also landlord-tenant matching sites you may be able to use. However, Canadian postings are limited and you may have more success on Craigslist or Kijiji.

Has Canadian Listings:

Occasional Canadian Listings:


Types of Landlords

Corporate Landlord

A corporate landlord owns more than one property. They may have more legal requirements than another type of landlord as they have shareholders to report to. Corporate Landlords are concerned with the bottom line/ profit, this means that it is important to highlight that you are flexible in your agreements with timing. If they have a vacant property that you are using, you will need to understand that their priority is finding a full-time tenant versus hosting the Pop Up. The best type of agreement/contract to use in this case is a license agreement and to have all your legal documents outlined before pitching your idea.

Property Management Group

A property management group usually does not own the property but manages the leasing, tenants and maintenance for the owner. Often they manage buildings such as offices, malls or other large retail spaces. Property Management Groups are responsible for the overall appearance of the property and try to ensure that they have full tenancy at all time. This means that if they have a vacant lease, there is opportunity to pitch them on occupying this space to maintain the overall appearance of the property (empty retail spaces look unattractive). Due to the large scale of Property Management Groups, their main priority is maintaining full tenancy, rental incomes, and providing excellence retail experiences to their consumers. Similar to corporate landlords, having all your legal documents before the pitch is the best practice.

Independent Landlord

This may be a landlord that owns only one or two properties and is not associated with a larger company. This may be found often on main streets and niche retail areas.