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Should you negotiate a lease with a potential tenant?

On Behalf of | Aug 24, 2020 | Uncategorized |

As a landlord, something you prefer not to negotiate your leasing agreements. You have specific leases that you like because you find their terms most favorable to you. While you want tenants to have a good experience, you also want to protect yourself and your property.

Now, however, you have a tenant who is interested in a space that has been vacant for a few months. The rental income would be good for you, but they want to negotiate a lower rate or some other concession. Is that worth doing, or should you avoid negotiating?

Negotiations can benefit both parties

Though you may not like to negotiate, the right changes to your lease may actually help. For example, maybe your new tenant wants to knock $100 off the cost of rent each month, but they’re willing to perform yard work for you in exchange. If you are paying $50 a week to a lawn care service, you could actually be saving $100 a month by allowing your tenant to mow the grass as a part of their lease. 

Whenever you negotiate, it’s always smart to make sure the negotiation benefits you in some way and is also confirmed in writing. For instance, in the above case, you’d also want to be sure that you included the requirement to mow weekly or biweekly in the lease in order as a condition for the reduced rent. 

If you need to negotiate the terms of a lease, it’s worth discussing the changes with your attorney to create a new lease that is binding and continues to protect your rights as a landlord.