Negotiations before a lease renewal are often seen as a good thing by most renters and a not-so-good thing by most landlords. It feels like a hassle to go through with a potential disappointment in the end.
But that doesn't have to be the case! The right lease renewal strategies can make negotiations much better for both parties. Keeping good tenants is key to having a successful commercial rental property, so learning these skills is key!
Check out our top tips for negotiating lease renewals so that everyone gets what they want!
Start with Smart Tenant Screening
Before you start with any lease talks, you need to find reliable tenants. Negotiating with bad tenants isn't worth it because you likely don't want to entice them to stay. The right screening strategies can help take care of that problem altogether.
It's also important to be sure that you're marketing your property to the right audience. This is such an important step, it's a good idea to bring in some professional help.
Highlight Perks of the Current Lease
Once you've had a good tenant that you want to stick around, it's time to highlight the good things.
Negotiations often focus on things a tenant wants changed or improved. Keep the tone positive by noting the perks of being your tenant. That could be access, rates, or even the location.
You want to show the tenant there is value in compromising to find a solution so they can stay. Everyone working together always gets better results.
Get a Rental Analysis Ahead of Time
As the property owner, you want to get the best rental rate possible. That's going to require a little bit of research ahead of negotiations.
It's a good idea to get a rental analysis a little before the meeting with the tenant. This will give you the most accurate data to share. That analysis is going to show what your property is worth and, therefore, how much you can charge.
Share Plans for the Future
Negotiations are also a great time to share future plans for the space as well. That can include plans for improvements or expansion to other areas. With that information, your tenant can feel confident moving forward with the lease.
Working together with a good tenant can make being a landlord so much better! Sharing your plans is a great way to build that bond.
Best Lease Renewal Strategies for Commercial Properties
Understanding these lease renewal strategies can completely change the experience for you. Instead of dreading the time when you have to go through them again, you can look forward to it. It's a time when you can create strong relationships for longer leases.
You can make negotiations even easier by bringing in the professionals. A manager will know everything about your commercial property, so they can handle it all!
At PMI Loudoun, our team of real estate experts knows what it takes to be successful. They use that knowledge to help you make the smartest decisions for your property. Start by getting a free rental analysis today!
