Negotiate a discount for prepaying 12 month’s rent

Subject to having the available funds, prepaying 12 month’s rent in advance has the following benefits:

• A 5-10% discount on the years rent expense – this needs to be negotiated and agreed to by the landlord.
• Tax savings – reduced taxable income (and tax liability) in the financial year the 12-month prepayment was made.

Implementation process:

• Access whether the business has available funds on hand to prepay 12 month’s rent, and whether this is the ‘optimum’ use the business capital.
• Negotiate a rental discount with the landlord for the prepayment.
• Ensure the agreed rental discount is evidenced in writing.