PROPERTY MANAGEMENT
6 Key Strategies for a favourable lease termination negotiation
1 . Know your lease terms Before you approach the other party , familiarise yourself with what your lease agreement says and understand what your rights and obligations are . Look for any clauses that specifically deal with the termination of the lease agreement .
These clauses may have conditions that will first need to be met and can cover a variety of considerations such as cancellation penalties or notice periods .
Check the market-related rent as well as vacancy rates in your area . If these are in your favour , let the other party know .
2 . Communicate your needs When you are clear on your contractual obligations and rights , contact the other party and communicate why you would like to terminate the lease agreement . Explain your reasons and see if the other party is willing to accommodate your situation .
Avoid making demands or threats . Be honest and respectful . If the other party doesn ' t fully understand why you want to terminate the lease agreement , they may become defensive . Explain the benefits of reaching a mutually agreeable solution , such as avoiding legal disputes and maintaining a good relationship .
3 . Explore the termination options Depending on what your lease agreement says and how the other party responds to your request to terminate the lease , you may have different options as you negotiate the termination .
Your options may include : - Early termination with a cancellation penalty
Real Estate Investor Magazine NOV / DEC 2023 58