Lease renewals are up 53.3%, and it's only going to continue to get higher as time goes on. Even with the significant rise in lease renewals, it doesn't make the act of negotiating your new lease renewal offer any easier.
Negotiating can be challenging for tenants and landlords, but here are some valuable tips that can help you choose the right vacancy rates and bring up the idea of a tenant rent increase at the right time.
1. Tenants: Understand Your Lease
Before you can negotiate the terms of your lease, you need to understand what's written in it, to begin with. Take time to study the clauses in your lease and highlight the area that details the renewing rights you have as a tenant.
If you don't plan to renew your lease, there will be an area that lists the number of days you have to notify your property manager about your final decision.
Notifying them ahead of time will help them to decide if they need to dedicate funds to marketing and filling the property with other tenants or will prompt them to start negotiating your new lease with you.
2. Landlord: Be Professional
Speaking to tenants about a rent increase is never easy, and you can't control the reaction people have to the news, but you can control the way you behave. No matter what emotions your tenants display when you are discussing the property rent increase with them.
Remain professional and calm, and it may help if you bring evidence to support your decision to increase the rental price.
3. Tenants: Gather Your Documentation
When you sit down to negotiate the terms of your leasing agreement, you can guarantee your landlord will bring evidence as to why they want to increase your rent. However, you should also be prepared to have evidence as to why they shouldn't increase your lease.
If you find that the landlord is adamant about raising your rent, have some ideas in mind that could make up for it. For example, does your apartment have old or outdated appliances and amenities?
If so, you could always ask them to make appliance upgrades instead of raising the rent or ask them to reduce the pet fee you pay for having your animal there.
4. Landlords: Understand If You Want to Keep the Tenant
Before you start negotiating the lease price with your tenants, you need to take some time to evaluate if you want to keep them as tenants in the first place. Take some time to review the history of the tenant.
- Do they pay their rent on time?
- Have other neighbors ever complained about them?
- Do they keep the rental property maintained?
If you've had issues with a tenant, you might not see the advantage in renewing their lease, but if they're a model tenant, you would need to take steps to motivate them to renew their lease.
Navigating Lease Renewals for Tenants & Landlords
Lease renewals are never easy for tenants or landlords, but some tips we've provided can help make the process easier. Both sides need to have strong reasons for negotiating their side and remain professional.
Carolina Property Management can help you by providing resident, agent, and property owner resources. Contact us today.