Renewal Tips when the time comes

Follow 11 tips when negotiating renewal near lease end.


"Like many other tenants, you may have signed a lease without a renewal option. A renewal option may not have been important to you when you negotiated the lease because you didn't anticipate staying in the space beyond the initial term. Or the owner may have refused to give you a renewal option when you negotiated the lease.


Renewing the lease can be a golden opportunity to get a better deal from the owner, especially if the tenant has proven itself as a good tenant, or the real estate market (from the owner's perspective) is weak.


Follow these 11 negotiating tips if you want to renew a lease that does not already have a renewal option:


(1) Start renewal negotiations early.


(2) Prepare for negotiations by researching market.


(3) Don't accept owner's first renewal rent
figure.


(4) Ask for Operating Expense/CAM cost exclusions or cap.


(5) Don't let owner take away key concessions.


(6) Consider changes in neighborhood/market when setting
renewal term.


(7) Don't let owner factor TIA (tenant improvement
allowance) repayment into base renewal rate.


(8) Use renewal negotiations as opportunity to fix lease
problems.


(9) Apply security deposit toward base renewal rent.


(10) Don't agree to do building upgrades during renewal
term.


(11) Be willing to leave space behind."

for more information see: www.houstonrealtyadvisors.net
Ed A. Ayres 713-782-0260