💬 The Concern That Sparked the Conversation
“We really like the space, but we don’t feel comfortable paying three months’ deposit plus one month’s advance. After all, the Letter of Offer isn’t binding… right?”
That’s what a tenant told me recently during lease discussions.
At that moment, I paused.
Because from their perspective — the concern made perfect sense.
📄 Misunderstood: The Letter of Offer
In commercial leasing, tenants often see the Letter of Offer (LOO) as a soft commitment, almost like a handshake before the real contract.
But here’s the twist — the LOO is legally binding once signed.
🔐 Why the LOO Exist
It’s designed to protect both parties:
- It ensures the unit is reserved for the tenant, so no other offer can be issued for the same space (doing so would be illegal).
- It gives the landlord confidence to stop marketing the unit while the lease agreement is prepared.
🤝 Trust and Transparency
Still, I understood their hesitation.
It’s a big financial step. And trust matters.
So I checked with the landlord.
They’ve never rejected a signed LOO before. The only times deals didn’t go through were when tenants decided to withdraw — not the other way around.
Even rare scenarios like government restrictions or outgoing tenants refusing to vacate?
Never happened.
And here’s something many tenants don’t realise — before signing the Letter of Offer and making payment, the landlord typically provides the specimen tenancy agreement for review.
That way, tenants can read every clause before committing. Transparency is built into the process.
The landlord’s approach has always been consistent: clear, fair, and reputable.
And any changes requested by a tenant must go through their legal team — ensuring full transparency.
🔄 When Understanding Changes Everything
When the tenant understood this, their perspective shifted.
They saw that the deposit wasn’t a risk — it was a guarantee of fairness on both sides.
Sometimes, clarity builds confidence faster than persuasion ever could.
👓 Negotiation Through the Tenant’s Lens
That’s why, in every negotiation, I try to see things through the tenant’s lens first — not just to close a deal, but to build trust through understanding.
Have you ever had a moment when understanding the “why” behind a process completely changed your confidence level in it?
