How to Negotiate for a Location with a Landlord:

See It From His Point of View:

Keep in mind that the small amount of rent that you will generate is not likely to be the Landlord’s greatest concern or motivation. This is just a small aspect of the over-all scheme of things. The primary concern is his primary line of business. If he is a property manager overseeing a plaza or a business complex, he will be concerned about how your business will affect his other tenants. If he is a large storeowner, he will be concerned about how your business reflects on his store’s reputation and affects his customer traffic.

In fact, don’t even bring up the matter of rent. If the subject of money is to be raised, let him be the one to bring it up. This reiterates your original plan that having the landlord as a business partner, is important to the growth of both of your businesses.

Motivate the Landlord:

First highlight the benefits that your hot dog cart will bring to his establishment, such as:

• Your hot dog cart will draw more business to his business.
• Your hot dog cart will not take away from existing business but will enhance it by adding variety.
• Your hot dog cart will improve employee and customer morale.
• Your hot dog cart will keep his employees from leaving the area for lunch and taking long breaks.
• Your hot dog cart is attractive and can be used in promotional ads.

Impress the Landlord:

Also emphasize how you intend to operate your hot dog cart in a manner that will enhance his business environment:

• You will operate your Hot dog cart in a professional and safe manner (meeting all health guidelines, snappy uniform, area clean-up, etc.).
• You will create a positive atmosphere that will be good for his business as well.
• You can be flexible and reasonable to deal with.

Show the Landlord your Business License and Health Department Permits, as these will establish your credentials as a professional food service. Other documents you need to exhibit include the following:

• Show the Landlord your employee rules of conduct policy and vendor cart dress and deportment policy, as these will allay his fears and build his confidence in you as a reputable vendor. This reiterates your assertion that you are a professional working with them as a business partner.
• Show the Landlord a picture of the hot dog cart you intend to use as well as its specifications and features. This would

Sell Yourself as a Professional Business Person:

There are a certain requisites you need to do to come across as a professional. You need to be present and negotiate in person. Your demeanor should look professional. You have to dress the part. You need to do this right at the first meeting as first impressions really count the most. Here are some tips for you to follow:

• For men, you should be clean-shaven. Dress in business clothes and wear a tie especially if you are scheduled for a meeting.
• For women, you need to dress up for the part. Women likewise should dress as businessperson not in casual or revealing clothes.
• Show the landlord your employee standards of conduct handbook.
• Prepare for your meeting. Rehearse your presentation so you can handle any objections professionally.

Other points to keep in mind:

You should be in control of the meeting. Know exactly what you want and need from him to be successful – the location and amount of space you will use, AC power, hours of operation, etc. It is best to have a checklist of discussion points and have a copy for the landlord to keep on the items you would be need for your food concession stand.

Have a copy of the rental agreement for him to sign. It is best to send a copy beforehand so that the landlord would have a look over. In some other instances, the landlord would have their own contract form. In this case, do ask for a copy beforehand and then discuss your questions during your meeting.

Monthly rent should not exceed two days gross sales. This is based on your traffic analysis and projected income per day. Leverage on the fact that the income is not solely on the rent, but the increased foot traffic your hot dog cart would bring in to the landlord’s business.

Rent for special events should not exceed 15% of gross sales. This is a matter you need to be certain about. Do remember that this is a limited engagement and having a ceiling on the rent you are to pay. If you pay anymore than this amount, you are sure to be in the red at the end of the day.

Do not allow the Landlord to dictate your working hours. Your working hours determine the income of your food concession stand. If your working hours are limited, so will there be an effect on your bottom line. Negotiate on amenable working hours so that you would be able to earn a nifty profit in the long run.