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What are common lease negotiation mistakes and how can you avoid them with active listening?

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Lease negotiation is a crucial skill for property managers, as it can affect the profitability, occupancy, and tenant satisfaction of your properties. However, many property managers make common mistakes during lease negotiation that can harm their relationships with tenants and their bottom line. In this article, we will discuss some of these mistakes and how you can avoid them by using active listening techniques.

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Paulo Evaristo

Paeva Consultor Imobiliário

1 Mistake 1: Not doing enough research

One of the most common lease negotiation mistakes is not doing enough research on the market, the property, and the tenant. If you don't have enough information, you may end up offering terms that are too high or too low, or that don't match the tenant's needs and expectations. This can lead to losing a deal, leaving money on the table, or creating dissatisfaction and conflict later on. To avoid this mistake, you should do your homework before entering a negotiation. Research the current market conditions, the features and benefits of your property, and the background and preferences of your tenant. This will help you prepare a realistic and attractive offer, and also anticipate any questions or objections that may arise.

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Paulo Evaristo

Paeva Consultor Imobiliário
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N?o prestar aten??o aos detalhes: Ao negociar um contrato de loca??o, é essencial prestar aten??o aos detalhes importantes. Isso inclui prazos, cláusulas específicas, responsabilidades das partes envolvidas, entre outros. A escuta ativa ajuda a captar e processar as informa??es detalhadas fornecidas pelo inquilino, evitando assim a negligência de aspectos críticos durante a negocia??o.

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2 Mistake 2: Not listening to the tenant

Another common lease negotiation mistake is not listening to the tenant. Many property managers focus too much on their own agenda and goals, and ignore or interrupt what the tenant is saying. This can make the tenant feel frustrated, disrespected, and uninterested in the deal. It can also prevent you from understanding the tenant's concerns, priorities, and motivations, which are essential for finding a win-win solution. To avoid this mistake, you should practice active listening during lease negotiation. Active listening means paying attention to what the tenant is saying, showing interest and empathy, asking open-ended questions, paraphrasing and summarizing what you heard, and confirming your understanding. This will help you build rapport and trust with the tenant, and uncover their hidden needs and interests.

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Paulo Evaristo

Paeva Consultor Imobiliário
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N?o prestar aten??o aos detalhes: Ao negociar um contrato de loca??o, é essencial prestar aten??o aos detalhes importantes. Isso inclui prazos, cláusulas específicas, responsabilidades das partes envolvidas, entre outros. A escuta ativa ajuda a captar e processar as informa??es detalhadas fornecidas pelo inquilino, evitando assim a negligência de aspectos críticos durante a negocia??o.

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3 Mistake 3: Not being flexible

A third common lease negotiation mistake is not being flexible. Some property managers are too rigid and stubborn in their demands, and refuse to make any concessions or compromises. This can make the tenant feel like they are not getting a fair deal, and cause them to walk away or resent the agreement. It can also damage your reputation and credibility as a property manager, and limit your opportunities for future deals. To avoid this mistake, you should be flexible during lease negotiation. Flexibility means being willing to adjust your offer and terms according to the situation and the tenant's feedback. It also means having a range of options and alternatives that you can offer or accept, rather than a fixed and final position. This will help you create value and find a mutually beneficial outcome.

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Paulo Evaristo

Paeva Consultor Imobiliário
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N?o prestar aten??o aos detalhes: Ao negociar um contrato de loca??o, é essencial prestar aten??o aos detalhes importantes. Isso inclui prazos, cláusulas específicas, responsabilidades das partes envolvidas, entre outros. A escuta ativa ajuda a captar e processar as informa??es detalhadas fornecidas pelo inquilino, evitando assim a negligência de aspectos críticos durante a negocia??o.

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4 Mistake 4: Not communicating clearly

A fourth common lease negotiation mistake is not communicating clearly. Some property managers use vague, ambiguous, or misleading language, or fail to explain the rationale and benefits of their offer and terms. This can create confusion, misunderstanding, and mistrust between the parties, and lead to disputes and disagreements later on. It can also prevent you from persuading and influencing the tenant, and achieving your desired results. To avoid this mistake, you should communicate clearly during lease negotiation. Clarity means using simple, precise, and honest language, and avoiding jargon, acronyms, and technical terms. It also means explaining the logic and value of your offer and terms, and providing evidence and examples to support your claims. This will help you convey your message and intentions effectively, and increase your credibility and confidence.

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5 Mistake 5: Not closing the deal

A fifth common lease negotiation mistake is not closing the deal. Some property managers procrastinate, hesitate, or forget to ask for the tenant's commitment, or to confirm the details and terms of the agreement. This can cause the tenant to lose interest, change their mind, or look for other options. It can also leave the deal incomplete, uncertain, or vulnerable to changes and challenges. To avoid this mistake, you should close the deal during lease negotiation. Closing means asking for the tenant's agreement, or proposing a clear and specific action that will finalize the deal. It also means verifying and documenting the details and terms of the agreement, and following up with the tenant to ensure compliance and satisfaction. This will help you secure the deal, and prevent any surprises or problems later on.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are common lease negotiation mistakes and how can you avoid them with active listening?

1

2

3

4

5

6

1 Mistake 1: Not doing enough research

2 Mistake 2: Not listening to the tenant

3 Mistake 3: Not being flexible

4 Mistake 4: Not communicating clearly

5 Mistake 5: Not closing the deal

6 Here’s what else to consider

Property Management

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What are common lease negotiation mistakes and how can you avoid them with active listening?

1

2

3

4

5

6

1 Mistake 1: Not doing enough research

2 Mistake 2: Not listening to the tenant

3 Mistake 3: Not being flexible

4 Mistake 4: Not communicating clearly

5 Mistake 5: Not closing the deal

6 Here’s what else to consider

Property Management

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