For certain rental property owners and managers, lease negotiations can feel too overwhelming. This is, indeed, true if you are new to rental property ownership or when the negotiations take into consideration lots of complex legal terms and regulations. In these and other situations, understanding the fine print is pertinent to give it importance that all parties are protected and that the agreement benefits everyone.
It’s true, a well-negotiated lease can set the foundation for a truly successful, long-term rental relationship, while the opposite can denote disputes and even costly court cases. From here on, we touch on practical tips to help rental property owners like you navigate confidently and conveniently even the most complex lease negotiations.
Prepare Thoroughly Before Negotiating
Effective negotiation begins with careful and detailed preparation. For rental property owners and managers, this preparation should entail reviewing local housing laws and regulations and relevant market trends. Later on, ponder on making a list of your non-negotiables: lease terms and policies you are not willing to surrender or compromise on.
Besides this list, put together another list of areas where you may be willing to impart some flexibility. Also, if lease clauses and legal language feel too complex, carefully consult local legal or property management professionals who can help elaborate or clarify concepts and terms.
Key Clauses to Pay Attention To
As you are about ready to negotiate a lease, it is an excellent idea to identify standard clauses that demand your rapt attention. Examples would be anything as to rent escalation policies, maintenance responsibilities, subletting policies, early termination clauses, and terms regarding security deposits (and their potential return).
Double-check your entire lease for compliance with all state, local, and federal laws, and, in the same vein, also for common sense and fairness. The ideal quality lease should clearly express the roles and responsibilities of all parties (including the property manager or landlord) and expectations and standards for maintenance, improvements, and upkeep. In negotiation situations, clarity is pertinent.
The Power of Clear Communication
It’s hard to be immersed in the importance of transparency and open communication in the time of lease negotiations. To safeguard that both parties understand their rights and responsibilities briefed in the lease, give attention to going slowly and clearly through each clause, checking for understanding, and allowing room for questions. Try to ward off the urge to rush out of impatience or frustration; doing so could most definitely work against you in the end. Alternately, focus on working toward shared goals, describing those plainly, and responding to any points of dispute with respect and professionalism.
If required, take into consideration enlisting the help of a neutral third party to provide an outside point of view and an uninvested perspective on the proceedings. This can typically be very advantageous and set in motion a more favorable resolution for everyone involved.
Be Ready to Compromise
While you may not be ready to bend on some things, you should have a set of terms you are ready to compromise on, if even a lesser amount. Flexibility and compromise are necessary to the process of reaching a mutually beneficial agreement, principally if tensions are high.
Some widely known areas of compromise include things, namely, lease duration, rent incentives, pet policies, or property modifications. Knowing the law and listening to your renter is critical. Ascertaining their priorities and rights can easily lead to more productive negotiations without sacrificing your fundamental interests.
Finalizing the Agreement: Documentation and Review
When you have reached an agreement, make certain to document all agreed-upon terms and conditions in writing. As a matter of fact, as a rule, all agreements you make with your tenant should be painstakingly reported in writing and signed by all parties named in the lease.
Another beneficial step is to review the final lease with your legal counsel or property management professional to ascertain it has complied with federal and local landlord-tenant laws. Later on, once you have approval, offer copies of the lease and any additional agreements to all parties.
Partner with Real Property Management for Effective Lease Negotiations
Becoming proficient in lease negotiations takes practice and experience, but it is indeed a rewarding endeavor. But then, there are multiple reasons to enlist the help of a rental property expert during the lease negotiation process to guarantee that everything is managed satisfactorily and professionally.
At Real Property Management Innovation, our goal is to totally ensure that your lease negotiations are managed resolutely and professionally. Contact us online or call 516-570-9275 to have a talk with your local office and find out more with regards our quality property management services in the East Rockaway area and nearby.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
