October 31, 2016

Treats instead of Tricks, Part II

Last week, we started discussing the early work to position yourself strongly for a tenant renewal scenario.  ( This week, let’s conclude the article. 1.  The Approach Let’s assume you have one of two options for the renewal scenario:  You plan on keeping the rent the same as in prior years or you plan on asking for a rental rate increase. Same rent scenario:  This one is easier, but be prepared for the tenant to ask for a possible rent reduction or other concessions.  Their argument could be as basic as,”Hey–you don’t have to search for a new tenant, so how about knocking $25 off our rent for the next year?” or “Hey–can you replace the carpet and we’ll agree to renew?” Whatever their request is….be prepared to know your numbers (i.e. profit margin) in order to know if you can do it or not.  In addition, if the request […]