AustinRealtyGuy's Weblog


Need to negotiate and lease renewal? Here are some tips!!
January 3, 2012, 3:01 pm
Filed under: real Estate | Tags: , , , , , , , , ,

 

   If you wish to negotiate with a landlord or management company, you should start the process at least 30 days prior to the deadline on your contract for vacating. 

When negotiating, key points to consider:

–your timely payments

 –your contribution to the beautification of the property

–your contribution to maintenance issues

 –the small number of issues that have escalated to management

 –loss of income from property when you move (i.e. marketing to lease to new tenant, cleaning, repairs, etc.)

Try to find out the current market value of the property (zillow.com) to see if you are paying above or below.  If you are paying above, you have a good resource for your negotiation.  If you are paying below try to offer something in exchange for the increase.  Offer to extend for 6 months to a year longer in the lease.  For example, if you are negotiating a 9 month lease, offer to bump it up to a year or 18 months instead.  This gives owners some piece of mind for a longer time. 

Retention is the bread and butter of property management.  There are numerous costs when property managers have to fill vacancies.  If you have been a “valuable tenant” these tactics should help to avoid the new rent increase.

I have used these tactics with new leases as well as renewals.  For me, they have worked 75% of the time.  Keep in mind that you may not be able to negotiate with the manager, so be prepared to move.

I hope that this helps you in your mission.