We all hear horror stories in the news about bad tenants wrecking properties and disappearing with unpaid rent.
But there is another side to this story, and that's the model tenant: the one who looks after your property, pays reliably, and makes property management a breeze.
If you want to keep hold of an excellent Portland tenant, you need to think about lease renewals. Here's how to approach any lease renewal and improve your odds of success.
Start Communicating Early
A lease renewal process takes time, so it's never too early to start. When you do, prioritize your communication - it can mean the difference between success and failure.
Several months before the lease expires, arrange a meeting with your tenant. Use this as a chance to begin negotiations, but do so without any pressure.
Remember that relationship building is at the heart of a successful lease, so communicate, listen to concerns, and be responsive to questions.
Review the Market
The rental market is forever evolving and sensitive to broader economic issues. It's vital you keep an eye on this, as it could shape essential decisions such as the rate you charge for a renewed lease.
It could also be a negotiation tactic if the current market doesn't favor tenants. Look at other factors that could shape the market, too, like whether your neighborhood is up and coming.
High demand is a strong position for a landlord when seeking a lease renewal.
Check the Lease Terms for a Rental Agreement Renewal
A lease renewal doesn't mean you have to extend the original lease. It's also an opportunity to make lease changes that could benefit the landlord, tenant, or both.
Start by clarifying any lease terms you feel are vague. Often, questions or problems emerge during a tenancy because of an ambiguous line item in the lease, so this is an opportunity to fix that.
Next, look at the details of the terms. It's a chance to use your lease as part of the negotiation. For example, if you have an excellent tenant worth keeping long-term, you could waive the lease or make the lease terms more flexible.
Get Feedback on Your Tenant Lease Extension
Getting regular feedback during lease negotiations is essential. It will help you progress and meet your deadlines.
Speak to your tenants about their thoughts and any changes they want in the lease, and do your best to accommodate those requests. Cooperation ensures trust between parties, which is the secret to any successful contract negotiation.
Keep Documentation Up to Date
Keep everything documented as you discuss lease terms. It's essential to stay organized so you don't lose track of what you've agreed to, especially with the small print.
Keep dates and store the records safely and securely in case you need to refer to them in the future.
Lease Renewals: Securing High-Quality Tenants
Every landlord dreams of a reliable and responsible tenant who can make property management a breeze. So, it's worth thinking about your strategy for lease renewals and starting as early as possible.
At PropM, Inc., we have the perfect combination of know-how and a dedicated team to secure a reliable tenant on your behalf in Portland. Learn more about our services here.
