1. Deal with one negotiation at a time
It is normally better to seal negotiations with one tenant and create new evidence to use at the next negotiations, and so on and so forth.
This is not always possible, but you may feel that you have a better chance of reaching agreement with one tenant than another. If so, initiate those negotiations first.
2. Know the market
It's not enough just to know what deals have been done. You need to know what's available, and what may be coming to the market. It's not easy, but the more digging you do, the more information you unearth.
It may be that a property has just gone under offer at a figure that supports an even higher rent than you envisaged. So start researching early, and build up the contacts and market knowledge to make the most of the available evidence.
Unlike a review date, a lease renewal is not fixed in time. The valuation date is the date of commencement of the new tenancy, and if the court determines the rent, it's based on the best evidence at the date of the hearing.
If you are aware of a deal that could help, but which may not complete for a while, you may want to delay serving notice, or if you've already served it, delay the negotiations so that you can use this evidence.
It may be that a property has just gone under offer at a figure that supports an even higher rent than you envisaged. So start researching early, and build up the contacts and market knowledge to make the most of the available evidence.
Unlike a review date, a lease renewal is not fixed in time. The valuation date is the date of commencement of the new tenancy, and if the court determines the rent, it's based on the best evidence at the date of the hearing.
If you are aware of a deal that could help, but which may not complete for a while, you may want to delay serving notice, or if you've already served it, delay the negotiations so that you can use this evidence.
3. Try to work out your tenant's intentions
Before you serve notice try to find out how your tenant is performing, or what their head office think of the location.
The more you know about their intentions, the better you can tailor your strategy on the renewal.
And if you think they may not wish to renew, you can begin to consider issues such as dilapidations, and marketing the property, in good time. Or there may be other ways to enhance value, such as converting upper parts to residential use.
The more you know about their intentions, the better you can tailor your strategy on the renewal.
And if you think they may not wish to renew, you can begin to consider issues such as dilapidations, and marketing the property, in good time. Or there may be other ways to enhance value, such as converting upper parts to residential use.
Reminder!
This advice may seem obvious, but it is not always followed.
Contact us to discuss the best strategy for you.
Contact us to discuss the best strategy for you.