Unlike standard rent reviews, managing a renewal of a lease involves other factors that need considering, such as the length of the lease, the repairing obligations, the break clauses etc.
As such, this handy guide shall look at a few tips to help you get through the process of managing a lease renewal in a properly considered and professional manner.
It’s great when the lease renewal is complete
Familiarise Yourself with the Dates
First of all, you need to know precisely when your lease terminates. Mark it on the calendar, or put it in your phone well in advance to ensure you have enough time to properly be prepared for its renewal. The more time you give yourself to deal with it, the less stressful renewing your lease will be.
Also, ensure that you know when you need to notify your landowner about a potential renewing of the lease. How long in advance must he be informed?. Mark that date on your calendar as well, put it on your phone, even set reminders to guarantee that you’re on time, ready to start negotiations for renewal.
Talk to Your Landlord
Even before the date by which your landlord needs to be informed that you wish to renew your lease, it is a good idea to talk to your landlord about it. Although things will be there in the relevant documentation concerning your renewal, it’s always best to get the information face to face so it properly sinks in.
Not only this, but you can ask direct questions about the renewal of the lease, such as whether or not the rates will be changing. What’s more you can look at negotiating the price and try to get a good deal.
Negotiating Your Renewal
With the current state of the economy, it shouldn’t be surprising if there are slight increases in the price you’ll pay for a renewal of your lease. If you want to manage your renewal professionally, you should seek to negate this increase and even reduce the price that you’ll pay for renewal in comparison to the one you paid last year.
When negotiating a renewal, it’s good to point out how good a tenant you have been; prompt payments and a lack of complaints are helpful things to mention. Unless you have been a bad tenant, it’s always worth pointing out how good you have been with the existing lease, persuading your landlord that you are a good choice of tenant to give the lease to, and a much better bet than risking giving the lease to a newcomer.
Knowing the law in this area can’t do any harm
If you offer other incentives for the landlord, such as agreeing to do your own repairs or even other tenant’s repairs then you’ll be a more valuable asset in the property and are in a better place to negotiate.
Also if you’re with a relatively small-scale landlord, offering a reduced price on the renewal up front can be a tempting offer. Although you may not be paying quite as much, paying up front is a guaranteed income for the landlord and it eliminates risk of payments being missed, which is always a plus.
Don’t Settle Straight Away
Let’s say you’re not in a great place to negotiate a better price. Perhaps you haven’t been the perfect tenant, or you just don’t have that persuasive a character. Don’t be happy with paying the increase costs for nothing. Use this opportunity to put in any requests. If you’ve got anything that could do with fixing, or you’ve always fancied better windows, agreeing to pay an increased renewal price is the best time to do it. Any perks in maintenance you would appreciate are most likely to be granted as you’re negotiating renewing a lease.
If in Doubt, Call in an Expert
Lastly, it is worth noting, that although there’s much you can do to make the best of your lease renewal, the best way to deal with it professionally is to call in a professional.
If you can, acquire the services of a financial expert, or property consultant to step in and help with negotiations. They can give you the best advice, allowing you to get the most competitive deal available.
When your lease is up for renewal, make sure it doesn’t hit you unexpectedly and be sure to try to get the most out of your lease renewal. If you approach it in a considered and planned out manner, you can manage your renewal like a professional. However, if at any point you doubt your own skills, call in the services of a real professional to get the best out of your renewal.