4 Best Practices for Negotiating Lease Renewals with Tenants

4 Best Practices for Negotiating Lease Renewals with Tenants

Imagine you have a rental property full of happy tenants who pay their rent on time and always renew their lease.

This is the dream of every landlord, but it's not always an easy one to achieve. Many Duluth area landlords will tell you that a tenant not renewing their lease is one of their biggest headaches.

The good news is that there are things you can do to make your lease renewals as painless as possible. If you are wondering how to get tenants to renew their rental lease, this short and simple guide is for you.

1. Consider the Market

The market in your area is always a factor that you need to keep in mind with a lease negotiation. If you are in a highly desirable area with low turnover, expect to have more leverage.

However, if you are in a declining area, it may be more difficult to get your tenants to renew.

Keep these facts in mind as you negotiate with your current tenants. Using your knowledge of the Duluth, Minnesota, area, create a renewal offer that is as attractive as possible.

2. Give Them a Reason to Renew

Don't negotiate simply for the sake of negotiation. Instead, put yourself in the shoes of your tenant and consider what would make them want to stay in their current space.

If they love it there and it fits their needs perfectly, then why would they leave? If you can make their lives easier through better service or amenities, then this will be an excellent starting point for renewing a lease.

3. Don't Try to Play Hardball

If it looks like the tenant will not renew, you may try to scare them into doing so. This is a dangerous game to play, however, as it can backfire on you quickly.

If the tenant feels like they are being pressured, they may simply walk away from the lease.

Try to find out what they want and then work with them to make it happen. Be honest about why it would be beneficial for them to renew, but don't lie or misrepresent anything.

4. Ensure the Terms of the Lease Are Clear

One of the best landlord tips in the Duluth, Minnesota, area is to never guess at anything. This means that you should ensure that you clearly state all the terms of the lease in writing.

If there are questions or worries, be sure to address them before signing anything. Make sure that the tenant fully understands what you expect of them under the terms of the lease contract.

Lease Renewals Don't Have to Be Scary

The idea of renewing a lease can intimidate you. But if you take the time to understand your tenant's needs, you may find it isn't as difficult as you thought.

If you've been an excellent landlord, your tenant will probably want to renew their lease. If they do, it will be a win-win for both parties. They get to stay in their home and you get guaranteed income.

PMI Lakeshore is a full-service property management company that makes lease renewals easy and stress-free. Contact us today to learn more about our services!