Are you wanting to get into the real estate game but don't know any of the lingo? Parse through this plethora of lessons where you will learn the meaning and specific application of dozens of real estate terms taught by the incredibly successful Michael Burer.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Definition Magician: Moving Allowance - A specific dollar amount paid by the owner to cover, in part or in whole, tenant moving expenses.
Lesson Nugget: Moving allowance is when an owner pays for the moving expenses of a future tenant as an incentive to signing a lease.
Lesson Nugget: Negotiating a moving allowance is based upon the power that the tenant has and the desire of the landlord to lease out the space.
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-All right, Thrivers. I'm Clay Clark and w e are here today talking with Michael. on Thrive15.com, one of the alternatives to lynda.com. There is no real estate topic too obscure. Burer, about this topic called moving allowance. Now, here's what's going to happen is I'm going to read the definition right here from sunny San Diego. And he is going to give us a little bit of an ample example that my mind can handle. So here we go. Moving allowance. The definition is, "A specified dollar amount paid by the owner to cover, in part or in whole, tenant moving expenses." Moving allowance. Talk to me about that.
-So when a tenant signs a lease with the landlord, the landlord is going to often provide some different concessions, or inducements, for that tenant to sign the lease. And those could include tenant improvements, the cost to build out the space. They could include some free rent. And they also could include moving allowance. So money to help the tenant move their office or business from another location into the new building.
-Do you have to be a big business before a landlord, a property owner, or real estate company is willing offer you some moving allowance?
-Not necessarily. It's more a factor of how much that landlord wants to lease you the space. So if this is a space that maybe has been vacant for awhile, if it's a market that's not as strong. The tenant has a lot more negotiating leverage. And it never hurts to ask.
-I think knowledge is power. But only if you act on it. And I think as a-- someone who is a business owner, if we don't ask for a moving allowance, you're not going to get one. Right? So is this something you could ask for?
-Right? This is kind of a negotiation point, maybe.
Well, one other thing I want to share with the Thrive nation before we wrap this segment up here is, each segment I try to come up with a way to show my appreciation for you. Verbal bouquets. I've been known to do verbal cartwheels. I've been known to verbally sacrifice for your benefit. And I wrote something down last night that might be a auditory sacrifice for you to listen to this. But I'm going to read it to you. OK? So here we go.
-Let's hear it.
-Michael, I appreciate you being here. And I often want to give you kind of a verbal bouquet to share how much I appreciate you being here. And I just want you to know, I couldn't appreciate you taking the time to talk about moving allowances any more than if I were to give you the rest of this Red Bull.
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