Mastering Lease Negotiations: Tips for Achieving Favorable Terms

Mastering Lease Negotiations: Tips for Achieving Favorable Terms

If you're a property investor in Chattanooga, you're in a city that has plenty of opportunities for inexpensive investments that can pay off over the years. There are great rental deals to be found in Chattanooga, as fair-market rent for a 2-bedroom is less than $1,000 today.

There are several options in play when you're looking into residential or commercial leasing. If you're hoping to get the best possible lease terms, you need to be willing and able to negotiate.

These tips are worthwhile when you're trying to get the best from your lease negotiations.

Get Professional Negotiating Help

Start your process by working with professionals who can help with the negotiation. Working with a property manager can not only help you find good tenants but also get the best possible lease terms.

These pros regularly study the market, make improvements to properties, and have several reference points within the local real estate market. Having one of these pros by your side can help you lay out your case and get the terms that make the most sense.

Have Evidence to Make Your Case

Always take a data-based approach to building your lease agreement case. When you can use documentation to make your case, you are more likely to get these concessions.

Work with professionals who can offer you a free rental analysis so that you get your property started on the right note. They'll let you know the most important details of your property and will advocate for the terms that work in your favor.

Compare Your Property to Others

Comparison is critical when you're at the negotiation table. You should be able to reference a property that is comparable to yours so that you can make your points.

If a certain property that is on par with yours offers certain leasing terms, you'll have more grounds to stand on. It will give you more leverage in the negotiation since you're referencing what the market has to offer.

Know Which Lease Terms Serve You Best

Finally, do your due diligence in knowing the exact terms that you'd like for your lease negotiations. This way, you'll have more direction and intention with your negotiation sessions.

Perhaps you're looking into the price to set for your rental. Your research might also include things like out clauses and differences in liability. You might even want to include a lease option that gives the tenant the chance to purchase the property.

You'll come to the table better prepared when you know what's possible and what works for you.

Master Your Lease Negotiations

The tips above are helpful whenever you're interested in lease negotiations but don't quite know where to start. You'll be able to get the most from your lease agreement so that your property remains profitable and lucrative.

We'd be happy to help. PMI Chattanooga can assist you when you need help with your lease agreement negotiations. Need help with your property management? Take the time to contact us on our website or by calling 423-708-6407.