When it comes to renting any kind of property, people are always rather skeptical of many things. It is understandable since it involves a lot of money, as this article tells us. However, it is also important to them since it concerns one of the most fundamental needs of humanity: shelter. No one wants to live outside, even though there are millions of people in the world who are homeless. It is still important to have some semblance of a roof above your head since it protects you from the elements.
Meanwhile, other aspects make many people skeptical of leases. For example, they might have a bad history against some managers who might have taken advantage of them. Remember, a rental lease is as good as any other kind of binding agreement. For this reason, you must know the basics regarding these agreements. After all, there is a lot of money involved in these situations, and you do not need it to get even more complicated.
To Renew Or Not Renew
It becomes even more crucial as the days count to the end of your lease. There are several ways that you can go along with all of it. The lease renewal option that you are going to explore is going to affect every decision that you will make for it. You need to remember that it will benefit the owners more than you do, but it will get less difficult for you if you stay. Now, you need to have the best agreement that would benefit you more, and you might need a little help with that.
A tenant representative can help you with what you need, especially during lease renewal. We all know that it is one of the more sensitive processes that you will ever face since the property manager or owner has the last word. They are still the ones who will make the decision, even if you were the best tenant that they have ever had in years. It would help if you know each other already, but there is a reason why it is difficult to still renew the agreement between two parties.
There are many things that you need to know before even considering the renewal. We have mentioned before that this is one of the most crucial parts of the process. It also includes the owner, as they know that you can easily negotiate the price if you have options. Similarly, the owners and managers can also hike up the price, especially if there are also others in the area doing the same. It is a matter of strategy and luck to learn and understand each other’s moves, but more so to the tenant.
Keep An Eye Out For The Signs
New Tenants Will Usually Have The Better Deal
There is a notion going around saying that tenants who were living in a property longer would have better leasing options. We do not know where this came from, but it probably stems from the belief that everything gets easier after the experience. However, it is not the case with rent, as it will usually increase over time. Newer tenants would have the better deal because the managers and owners would make everything look good and rent for a higher price. If you have been there for a long time, then you have the right to negotiate the terms, and they usually do not want that.
Price Increase
Some managers and owners will find ways to either increase the price or add some to your rent. It is something that most people try to deny, especially if we are striving to see the good in everyone. There are still those who want the best for everyone else, and that is something to admire and follow for the rest of us. However, others are also going to do everything to get a better profit. As a tenant, you need to be wiser and more perceptive of what your landlord is doing. There are times when a “good deed” from them is a ruse to make you not renew a good deal anymore.
Trust
It takes time for trust to form between two parties, especially if there is money involved. When it comes to the relationship between tenant and owner or property manager, it is more of a professional relationship. However, as time goes by, many have become closer and can be considered friends.
On the other hand, money complicates things, so you need to find someone who you can trust. It especially becomes more apparent as the renewal stages come in, so you need to know your owner or manager on whether you will both be agreeable to the terms. You need to remember that money can muddle even the strongest of friendships, so trustfully, keep an eye out for trouble.
The Surrounding Neighborhood Affects The Price Of The Rent
You might already know that the valuation of the property will usually depend on the neighborhood. As you may have noticed, the rent is lower in areas wherein it is considered unsafe to stay. The more affluent the area becomes, the more lucrative it will be for businesses and property owners. You might have also heard of stories wherein some tenants would fire guns or cause a ruckus to avoid the rental hike. It makes sense, but it doesn’t mean that it is a good practice, and it is something that you should know now as this link agrees: https://www.cnbc.com/2020/11/05/rents-are-falling-due-to-covid-heres-how-to-negotiate-a-lower-rate.html.
Economy
Most owners do not care about the economic status, but they will surely understand it when it is on the decline. It might sound heartless, but it is true: people usually do not care about the economy. As long as you can still live and do what you want, then no one cares about the state of the economy until it is on a decline.
Then, you will see the prices of necessities go higher along with the rent. If you are someone who knows such things, then beware when leasing renewal comes since it can be one of the reasons for an increase. You need to negotiate properly so that the increase would not come to fruition.
