Are you having trouble attracting or retaining tenants for your rental properties?
Part of attracting new tenants and retaining the ones you have depends on a successful lease negotiation. In this article, we will share our best lease renewal and negotiation tips.
Read on to learn how to handle a lease renewal negotiation.
1. Do You Want to Keep Your Tenants?
Before you start negotiating a lease with your tenants, you need to decide to retain them. If you like the tenants you currently have, they pay on time and don't cause damage to the property, and it might be worth retaining tenants.
If you have dream tenants that don't cause any issues, you should consider this when negotiating a lease renewal with them.
2. Learn About the Local Housing Laws
When you're in the process of negotiating leases with your tenants, you must learn about local housing laws. Staying on top of any changes in the law will ensure you protect yourself and your tenants.
For example, tenants in the Miami area need to ensure they provide safe heating equipment in dwellings built before 1969.
Staying on top of local housing ordinances will ensure everyone knows their rights and obligations.
3. Research the Current Market Prices
If you plan on raising the rent on your tenants, you must do your research first. The best way to set fair rent prices is to learn the rent prices for comparable units in the area.
If you have a price in mind, research the floor plan and amenities, which will help you decide if you are charging fair rent prices. You can make some upgrades to the units and add amenities if you want to ask for more money for rent.
4. What Are Your Vacancy Rates?
Part of doing your research is taking a look at your vacancy rates. If you have high vacancy rates, you should prioritize having more flexibility in your lease negotiations.
Charging higher than average rent prices when you have high vacancies could make finding new tenants more challenging.
5. What Do You Have to Offer Your Tenants?
During a lease negotiation with your tenants, you must share with them what you have to offer.
Share with them the different ways they can pay for rent, how they can communicate with you, and other incentives, such as free high-speed internet or cable.
6. Show Tenants You Can Compromise
Part of a successful lease negotiation is showing your tenants you can compromise. Your tenants should see that they have a say on the lease.
For example, they might request a shorter lease or ask that you replace appliances.
Are You Ready to Start a Lease Renewal Negotiation?
Now that you know how to handle a tenant lease renewal negotiation, you're ready to start the negotiations.
When you start negotiating, start by deciding if you want to keep your tenants, stay on top of local housing laws, and show you can compromise.
If you're a rental property owner in the Miami area and want to learn how to attract new tenants, contact us today to learn how.