Hello friends,
I am developing a hostel in Berlin. I have found a place and soon will have a talk to a landlord (a company who owns the property). I am not afraid of representing my idea and answering their questions, as I know everything about my business. The only thing that worries me is the negotiation the price and terms. What advice would you give me? Maybe you have your personal experience in that, so please, share it with me!
Thanks in advance!
12 years
I don't know if this will help...
I have found a great location and didn't want to lose it. So, I didn't argue about price, but tried, and succeeded, to get a free month to do everything needed to be done to start. Terms are simple - I pay 1.-5. every month and have obligation to return place in original condition when live. All bills are mine to pay, too. So, that's my story :)
12 years
Hey, it seems I am quite good at negotiation after all!
So I went to meet the owner of the property (a company is the owner) and I was pretty sure I will loose the place, because the price is super high (12.40 EUR/m2). During the talk, I was giving them my best arguments (that we need the place for a long term, we have funding to start things, we have solid business plan and financial prognosis that I showed them as well etc) I started saying my conditions. After all I negotiated this:
1. Dropped down the price from 12.40 EUR to 5.00 EUR per square meters. (more than a half!!!)
2. No rent before we start a hostel (meaning we will have around 5 months to install things, get permissions, do the design and the interior, etc).
3. 2 parking places for free
It could not be better than that! :)
12 years
Hey, it seems I am quite good at negotiation after all!
It certainly sounds like it. Knocking the rent down by more than half is pretty incredible, but getting the other conditions thrown in as well sounds damn near impossible without some crazy Jedi mind tricks. Well done!!
Do you have other neighbors to contend with, or is the consent of the company all the permission you need to get started in the building?
Congratulations!
12 years
No neighbors, as the whole building is owned by the same company and they are going to offer it as office space to other firms.
Now its only a city planing department, that might block the project if it is not zoned for such business. Even if it is, we need to get from them a lot of permissions and make sure the property applies all fire regulations (and in Germany they are crazy about that!). So the fun part is still upcoming :))
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