For most tenants and landlords, a lease renewal is the best option. It saves both sides the hassle of trying to find replacements. But that means they have to agree on terms for the new contract.
As the landlord, it's important to be prepared for lease negotiations. Keeping good tenants is the best way to make sure your property is turning a profit. So taking a little time to learn the best practices can help your business tremendously.
Before your next lease agreement meeting, check out these mistakes you should avoid!
Missing Key Information
One of the biggest mistakes landlords make is not doing enough research before negotiations. This can leave you vulnerable to agreeing to a number that doesn't benefit you.
Before your meeting, it's a good idea to get a rental analysis done. This will give you the most accurate view of what your property is worth as well as what you can feasibly charge for rent.
Having data to back up your suggested numbers can help move the conversation forward.
Being Too Stiff on Lease Terms
While it's helpful to have an idea of the terms you want, it's important to be open as well. A lease agreement is meant to be beneficial for both sides. So, some negotiations can be helpful.
Take some time to think about how you plan on communicating with your tenant. Open communication can make the entire meeting much more productive. Poor communication can drive a tenant away if you're not careful.
Failing to Highlight Positive Factors
While you are negotiating don't forget to highlight the positives of the property. It's just as hard for a tenant to find a new place to live, so focus on the good you have there.
This could include how you keep up with property maintenance, the area, and the unique features of the property itself. All of these things can help get a lease renewal from any tenant.
Starting Talks Too Late
Successful negotiations don't always happen in the first meeting. Sometimes you'll need a little back and forth to be able to find the agreement everyone likes. That's why it's so important to start your meetings well before the lease is up.
Starting too late can make everyone feel rushed and pressured. That kind of environment often leads to poor decisions.
The best thing you can do is give yourself enough time for back and forth. And enough to find new solutions if a renewal isn't going to work out.
Prepare for Successful Lease Negotiations
Taking steps before lease negotiations can change it for both you and your tenants. Instead of everyone fumbling their way through, you can guide them to a successful agreement.
A positive lease agreement is key to being a rental property owner. The last thing you want is to be finding new renters every year and hoping they're good ones.
At PMI Jacksonville, we know exactly how to keep tenants and landlords happy. Our years of expertise help make sure everything is done in the best way. Contact us today to see how we can help with your Jacksonville rental!
