To be successful in commercial property management, you must learn the art of lease negotiation and renegotiation. Learning negotiation tactics secures favorable lease terms and cultivates tenant-landlord relationships.
If you don't know where to start, you've come to the right place. In this guide, you'll discover proven tactics to maximize property value and minimize vacancies.
The goal is to sharpen your negotiation prowess and gain the upper hand in lease discussions. To get more insights into how to succeed in a competitive real estate market, just keep reading.
Study Real Estate Market Trends
One of the primary tips to follow during lease negotiations is to stay updated with the current market trends. It'll help you become aware of the lease rates in your area. This knowledge can be leveraged during negotiations to ensure that the terms of the renewed lease are competitive.
Commercial rental property owners should also have a clear understanding of their property's value. And, if things aren't up to par, improvements could be offered to tenants as part of the lease. Opting to provide upgrades is a good strategy, especially if the property has a low number of interested candidates.
During lease renegotiation, communication is paramount. There should always be open, transparent communication throughout the negotiation process. This includes addressing any problems that either party may have. If there are concerns, you should work towards finding mutually beneficial solutions.
Being proactive in addressing potential lease renewal obstacles can streamline the negotiation process and make renewing leases easier. Once tenants see that you're willing to correct issues, they're more prone to sign the lease.
Consider the Timing
You must pay attention to the timing of lease renegotiation. It's best to start the process well in advance. This will allow ample time for discussions and potential adjustments to the lease terms.
A proactive approach can help to prevent last-minute negotiations and possible disruptions to tenant occupancy. Before the lease date is set to end, go through renegotiations with the tenants and give them a deadline to renew. This will give you a jumpstart on filling the vacancy if they don't resign their contract.
Understand the Legal Aspect
As a property manager, you should be well-versed in lease contract terms. You must understand legalities and regulations to effectively navigate negotiations. This includes understanding the rights of both parties and any local laws that may impact lease agreements.
Consulting with experienced professionals can provide helpful insights and ensure that all aspects of the lease negotiations are handled appropriately.
Conquering Lease Negotiation and Renegotiation
Mastering lease negotiation and renegotiation is a complex task for property owners. That's why you shouldn't attempt it on your own. At PMI Cedarboldt, we'll handle tenant placement for you.
When it's time to establish a new commercial lease, our team will be there every step of the way. We'll also protect your investment by keeping your operating costs low, while still satisfying tenants.
If you're interested in moving forward, call 720-928-9327, or request a free rental analysis. We look forward to partnering with you!