Lowering rent for lease renewal
My tenant of one year has requested lowering the tent for a 2 year lease renewal due to similar properties on the same street that are listed for much less. These listings have sat for months. I'm considering it. Any landlords out here who are lowering rents in today's housing market?
Most Popular Reply
As investors it's our job to know the market we're investing in. We must stay aware of the competition, including location, condition, and pricing.
To verify the accuracy of statements your tenant made, go inspect those properties to make comparisons.
Is your market robust enough to replace your current tenant at the same or higher rent in a reasonable time? If not, perhaps offer a 1-year lease at the same rent they are paying now, or let it roll over into a month-to-month.
Moving is expensive for both tenant and landlord, and both parties will do what they feel is best for themselves. So get a feel for what the tenant is actually concerned with: is it simply to save a few dollars, or can they no longer afford the current rent? That's an important distinction.
Best of luck!