Only 28% of renters have recently negotiated the price of their most recent lease renewal. Without experience, lease negotiations can feel daunting. However, negotiations for lower rent prices work 25% of the time!
Read on for the tips you need to ensure a successful lease negotiation. With this advice, you can find an agreement that works for all parties.
Start negotiating today!
Research the Market
Before using the rest of these lease negotiation tips, gather data. Research the market and recognize current trends.
The Central Florida housing markets are among the most overpriced in the US. As a result, more people are renting. Since there aren't as many developers creating new units, there's a shortage in the entire state of Florida.
Look at rental rates, vacancy rates, and market trends in Orlando. Look for properties similar to yours in the area. Check their rent prices to negotiate a similar rate.
Use this information to negotiate from a position of knowledge. You could have an easier time securing favorable terms.
Consider Your Needs
Before entering a lease negotiation, take the time to consider your needs and goals. If you're renting a commercial space, consider:
- Your desired location
- Amenities you need to operate
- Features you're interested in
- The size of the space
Outlining your needs and goals will ensure you negotiate with those needs in mind. Otherwise, you could unintentionally settle for less once negotiations begin. You may fail to reach a lease agreement necessary for your business's success.
Don't make the mistake of trying to negotiate your lease alone. Hiring a real estate attorney or commercial leasing professional could prove essential. They'll help you make more informed decisions based on your goals.
They can help you navigate complex legal jargon. Working with a professional will protect your best interests.
Be Willing to Compromise
Try to begin the negotiation process within 90 days of your lease expiring. If you wait too long, you could rush through the lease negotiation process. You could end up with unfavorable terms.
Beginning this process early will allow all parties to negotiate and discuss multiple options.
Give yourself leverage by considering multiple landlords and properties. Remain willing to walk away if your terms aren't met. This could encourage your landlord to remain accommodating and flexible (especially if they're struggling to attract tenants in a tough market).
Negotiate your rent terms. Negotiations should cover the base rent and rent escalations. Look for opportunities to secure a fixed rent to control future costs.
Negotiations involve give-and-take. Be willing to compromise to reach lease terms that suit your needs.
You may need to discuss alternative lease structures. Options include gross leases, net leases, and percentage leases. Consider the benefits and drawbacks of each option.
Ask for Help With Lease Negotiations
You don't have to enter your upcoming lease negotiations alone. Instead, consider working with a property management company. They can help you find and secure favorable terms.
PMI Property Alliance is a full-service real estate management company. We offer high-quality services to help our clients maximize their profitability. Contact us to discover how our services can benefit your lease renewal process!