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Lease negotiations aren't always as straightforward as turning on the charm, handing your tenant the contract and a pen, and waiting for that signature.
Sometimes, negotiating a lease means having a strategy, and it can make a big difference to your profits if you are trying to keep hold of a reliable tenant or worry about your Alamo, CA, property remaining vacant.
Here are our top tips on getting your next lease negotiation right.
Look at the Current Market
To start negotiations, you need to know your strengths and advantages.
When it comes to leases, that advantage could be market demand. If lots of people in Alamo are seeking properties and supply is low, that will put you in a strong position from the start.
Conversely, a weak position means you might have to work harder to offer attractive incentives.
Look at Similar Properties
Once you know more about market conditions, it's time to do more in-depth research. Focus on other listings that have similar characteristics to yours.
Ask yourself whether your tenant would move into these properties instead, and if so, why they stand out. Maybe that's a better interior or a cheaper rate.
Negotiate on Terms
Many landlords find it hard to negotiate a lease because they focus too much on the rental rate. That's often difficult to change, as you'll have your costs to cover, and tenants will want to limit their expenses, too.
So focus on other negotiation points instead, like your lease agreement terms. You could offer a more flexible, short-term lease, for example.
Get Help from Experts
Real estate professionals like our team can be an asset when negotiating leases. We can bring legal and commercial knowledge to help with the fine print or strengthen your negotiation position.
Having the help of experts also relieves some of the pressure and time-consuming tasks involved in agreeing on a lease with a tenant.
Focus on Maintenance and Repair Work
One thing that may put a tenant off a lease renewal negotiation is if your property is in poor condition. Tenants facing poor water pressure or unreliable HVAC units will likely want to avoid more problems. They will often look for a better property nearby instead.
Assign a budget for repairs and upgrades and complete the work well before the lease renewal date.
Build a Rapport With Your Tenant
A good relationship with your tenant shouldn't be underestimated. Strong relationships build trust, and people want to sign lease contracts with those they trust. Build a strong relationship by being:
- Responsive to maintenance issues
- Easily contactable by phone and email
- Offering flexibility with your tenant
It's also worth speaking to your tenant and listening to their concerns or complaints. It will help you make the right improvements.
Lease Negotiations: Making Them Work for You
Mastering lease negotiations is worth the time. It helps you keep hold of the best tenant and avoid the costs of remarketing an empty property. Use these tips to help you.
PMI Contra Costa is a locally owned realtor team that is part of a national brand. We offer the best of both worlds: a personal touch with proven processes. Find out more about our property management services in Alamo, CA, here.
