Are you ready for the next round of lease negotiations with your tenants? If not, you should be: they allow one in four tenants to lower their rent.
First things first: negotiating a lease isn't just about rent prices. It's also about the quality of living conditions you can offer. If your tenant feels happy with their current situation, their demands won't be too harsh.
Not sure how to offer lease terms your tenants will find acceptable? Here are five tips that will help you get started on the right foot!
Review the Current Lease
Before negotiating a new lease, review the current one carefully. Identify its terms, clauses, and obligations. Consider how well this lease has served your purposes and if there's something you want to change about it.
For instance, consider the incentives that apply to your current lease. Reduced rent is a big one, but what about a referral program? You can also consider offering shorter lease terms or allowing pets into the rental.
Define Your Objectives
To negotiate your lease, you first need to have a clear vision of what you hope to achieve. This involves defining your financial and operational objectives. Once you have those, you'll know what you can compromise on.
Let's say one of your objectives is to fill your vacancy as soon as possible. To make that happen, you'll need to set a timeline for your negotiations. If your tenant can't accept these terms, there's not much point in negotiating.
Consider the Market
Negotiating a lease involves understanding the trends and market conditions that affect it. As long as you do your homework and research the market, you'll know exactly how much bargaining power you have.
A good place to start would be to look into comparable properties in your Vienna area. What are their average rent prices and vacancy rates? External factors, such as the economy, can play a big role here as well.
Anticipate Potential Risks
Every negotiation process involves certain risks and issues. By anticipating these risks, you can plan how to avoid or address them. This will also allow you to prepare a contingency plan in case things go off the rails.
For example, your tenant's living circumstances may have changed recently. As a result, your negotiations could take longer to resolve. To avoid needless delays, consider what you can offer to get them to renew their lease.
Establish Rapport
Trust and rapport are the cornerstone of every successful negotiation. During the negotiations, listen to your tenant's needs and concerns. As long as you're cooperative, it will be much easier to create a win-win situation.
Of course, this doesn't mean you should let your tenant walk over you. Consider different options, but present your proposal confidently as well. Try to focus on the facts rather than lean into emotional reactions.
Making Sense of Lease Negotiations
Negotiating a lease can be tough, even with people you want to keep around. The above tips will help you keep this process simple and to the point.
Looking for professional help with your lease negotiations? Our property management experts at PMI Smart Choice can help! Contact us here to find out how we've helped other Vienna landlords like you!
