Q: How to negotiate landlord's $24,000 demand after a license delay?
I encountered a delay in opening my business because the previous tenant fraudulently acquired a professional license, which postponed my license issuance by three months. This issue was resolved by the agency with my compliance. My lease has a provision to avoid penalties for licensing delays. However, the landlord has sent a demand for $24,000 covering the period from the anticipated opening until now. They have expressed a willingness to negotiate and asked me to initiate the process. I am considering proposing a new start date of February 1, which would include a 15-day operative free rent provision. What would be the best approach to negotiate this issue and ensure a fair resolution?
A: There is no shortcut on these facts other than an under-prepared negotiation. To do a professional job, a lawyer would need an understanding of the lease provision you negotiated, the nature of the guarantees and corporate liabilities, and the other terms of the lease, as well as the tactical and financial position of both parties. Otherwise, just ask for what you want and see if they laugh at you.
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