You’ve spent hours carefully drafting a lease that specifies the critical details of landlord and tenant rights and responsibilities. Though the new lease seems fair and balanced to you, your vision may not align with your tenant’s needs. Now what? Negotiating a rental agreement acceptable to both parties is often challenging, but using the following strategies can help you reach a successful compromise.

Do your research. Lease negotiations are more likely to end positively if you’ve researched the situation. Review what similar units in your area charge for monthly rent while considering property size, amenities, and location in your estimates.

Be open and honest. Trust is a vital aspect of any landlord-tenant relationship. When meeting with a potential tenant for the first time, explain lease terms clearly and be upfront about expectations. If it’s time for a lease renewal, notify your tenants about needed changes to the rental agreement so they can adjust, ask questions, or negotiate. Renters who feel valued are likelier to maintain the property and stay long-term.

Be flexible. When your tenant makes a request, listen well and consider his position. Of course, specific lease terms must be set in stone, but some terms are negotiable. Maybe you could allow your renter to have a pet for an extra fee, offer a more favorable monthly rent for a lease renewal vs. month-to-month, or offer an improvement like installing ceiling fans.

Write it down. Even the most successful negotiations can go south if the parties remember different versions of the discussion. Follow up your conversation with an e-mail or letter detailing the lease changes you agreed to, including a document for the tenant to sign and return. Keeping written records will avoid disputes by ensuring everyone is on the same page.

Stay compliant. Just because a renter agrees to a lease term does not necessarily make it legal. Be familiar with local laws and regulations and stay abreast of changes. When questions arise, consult an attorney to ensure your rental agreement remains enforceable.

Know when to quit. Finding long-term, quality tenants minimizes turnover and provides a steady source of income. But if your lease negotiations keep dead-ending, it may be time to part ways. While compromise is essential, avoiding rent prices or lease terms that will hurt you in the long run is critical.

It is best to handle lease negotiations in a positive manner and address any concerns in real-time. Remember that renters want you to treat them with professionalism, compassion, and humanity and not just as a source of income. With that thought in mind, once your tenant signs a rental agreement, remember that fulfilling your side of the bargain will inspire your tenants to fulfill theirs, too.

About Rentals America

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management, and we’re here to help landlords navigate the rental market.