The North Carolina real estate market might be looking strong right now. But relisting a property on the market is still a gamble - especially if you already have an excellent tenant.

Instead, you can consider the benefits of lease extension and focus your efforts on retaining a reliable tenant for your property. In this guide, we'll share our top five lease renewal tips for succeeding with your lease extension agreement.

1. Look At Current Market Conditions

The current state of the real estate market will help you understand your negotiation strengths. So, if you want to secure a lease extension from your tenant, take some time to research the local market and broader economic indicators.

The most crucial factor will be current rental rates so you can offer a competitive price to your tenant. You'll also want to consider factors like the property supply and overall demand for similar properties.

2. Review Your Lease Agreement Terms

Extending a lease is a chance to update some of the terms.

Maybe it's so that the small print is more transparent for both parties. Or perhaps you'll use the terms as a negotiation tool, providing more favorable terms in exchange for a lease extension.

Begin by reading through a current copy of the lease agreement and asking your tenant for feedback. Highlight any areas you feel are unclear or up for discussion.

3. Begin a Negotiation Process

Start a negotiation by listing the terms you are willing to compromise on. For the first negotiation, meet your tenant in a mutual space, as you'll cover more by speaking about the lease face-to-face.

After that, some of the final details can be dealt with via email.

Remember to listen to what your tenant has to say and think creatively about some of the solutions. And keep an eye on timescales. Set deadlines for each stage so you aren't rushed for time toward the end of the negotiation.

4. Use Professionals for a Lease Extension Agreement

Professionals are there to help with complex aspects of property management, and lease agreements certainly fit that criteria.

A real estate professional can guide you on the law and ensure your lease agreement is legally sound, avoiding future pitfalls. They'll also be able to provide valuable input into market forces and best practices to help with the negotiations.

A professional can also manage the lease agreement, setting timescales and arranging for both parties to discuss and negotiate the terms.

5. Be Organised With Your Documentation

Remember to write down any agreement as you go.

Keep things organized with a central version-controlled document. That way, you won't lose track of meaningful discussions, and there is less chance of a dispute about what was said or agreed upon in a meeting.

Documentation is also a vital resource for your real estate business, as it serves as a valuable reference should you encounter future disputes with the tenant.

Retaining High-Quality Tenants

If you find a reliable tenant, it's worth hanging on to them. So consider some of the advantages of a well-planned lease extension agreement and use these tips to help you.

Your best asset in any negotiation is a team with experience and knowledge of the law. That's what we offer at Carolina Property Management, LLC. You can find out about this and our other services here.