PROFESSIONAL LEASE NEGOTIATION

There are many facets to negotiating a lease – monthly rent is one of many inputs that affect profitability.
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LEASE NEGOTIATIONS THAT DRAW ON ALL AVAILABLE INFORMATION TO DRIVE PROFITABILITY.

Proposed rent, level of interest, length of lease, lease start date, and concessions the five main inputs of a lease negotiation. Each of these inputs influences profitability and must be negotiated at the same time.

PROFESSIONAL LEASE NEGOTIATION DETAILS:

LEVEL OF INTEREST
LEASE START
LEASE TERM
CONCESSIONS
OPPORTUNITY COST

LEVEL OF INTEREST:

Through the years Boomtown has developed benchmarks and best practices as early indicators for the effectiveness of pricing strategies when marketing homes for rent. If the current price of a home is yielding strong interest, there is less incentive for a property owner to agree to a discount on the advertised rent. The opposite is also true.

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LEASE START:

The sooner a new tenant takes possession the sooner our property owners see a return on their investment. Negotiating the start date of a lease has a material impact on profitability and is never overlooked during negotiation.

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LEASE TERM:

Turnovers are the antithesis of a profitable rental property. Longer lease terms are generally preferred by property owners and provide certainty for tenants. Win / win. Turnovers always include “normal wear and tear” expenses that cannot be billed back to previous tenants and deducted from the security deposit. Finally, lost rent is also part of the equation when turning over a property. The lease term should always be part of a negotiation and can help both tenants and the owners achieve their respective goals.

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CONCESSIONS:

Lease concessions are an overlay of sorts during the negotiation. Concessions help to achieve a specific goal of the owner (e.g., three-year lease) or the tenant (e.g., new carpet in bedroom) and can be useful to promote tenant satisfaction while improving the owner’s property. In our experience lease concessions have a measurable impact on tenant satisfaction and can be linked to longer total tenant length of stay which results in lower turnover costs and a more profitable property.

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OPPORTUNITY COST:

At Boomtown we believe opportunity cost is a real cost. We believe lease negotiations should always include creativity to meet the needs of prospective tenants and maximize the profitability of our managed properties.

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Frequently Asked Questions

How are emergency calls handled afterhours?2021-07-07T15:53:07-04:00

All afterhours emergency calls are answered 24/7 by a Boomtown employee trained in the immediate mitigation of property loss. If necessary, emergency services are arranged to limit property loss, and our owners are provided a video if an emergency site visit is necessary.

How will I know that the tenants are taking care of the property?2021-07-07T15:52:58-04:00

Maintenance inspections are performed twice a year. Boomtown property owners are provided with an inspection report with time / date stamped pictures so you can feel confident in the condition of your property. During the turnover process you can stream the move-in / move-out video for additional detail.

What type of properties do you manage?2021-07-07T15:52:46-04:00

We manage residential property in Frederick and Montgomery counties.

How quickly do I receive the rent income?2021-07-07T15:52:34-04:00

Owner distributions are processed on the 15th of each month and funds are generally available within 48 hours. All owner distributions are direct deposited.

How long is a typical turnover?2021-07-07T15:52:22-04:00

1-2 weeks. We generally need about 1-2 weeks after a move-out to inspect the property, and make it move-in ready for a new tenant.

Who takes care of turnover work?2021-07-07T15:52:14-04:00

We do! The placement fee includes the work Boomtown does to scope and administrate any work done at your property. Contractors perform the work, Boomtown administrates the work.

Can I do my own turnover work?2021-07-07T15:52:05-04:00

Yes. Our requirement for licensed and insured labor is only for occupied units. Boomtown only hires contractors that are licensed and insured; however, you are welcome to perform work on your own property and hire your own contractors without restrictions during the turnover process.

Can I use my own contractors?2021-07-07T15:51:56-04:00

Yes. We are happy to oblige any request for preferred contractors as long as they are licensed and insured.

Why should I sign with Boomtown?2021-07-07T15:51:48-04:00

This question is predicated on assumptions. A better question would be: “What matters to you as you consider a professional property manager?” Browse through our Services and Types of Owners sections. We are a property management company focused on adding value by innovating through technology to deliver better experiences at a lower cost. If that works for you, then our Rental Analysis is the next step.

What makes Boomtown different?2021-07-07T15:51:37-04:00

Low price AND great service. We use technology to drive down the cost of business and we pass the savings to you. We’re not a property management franchise. We’re not the largest property manager in Maryland (and we don’t want to be). We’re a small business with great processes and a professional staff working with like-minded property owners in Frederick and Montgomery counties.

Do run background and credit checks on tenants?2021-07-07T15:51:28-04:00

Yes, 100% of our tenants have been verified through background and credit checks. We also conduct employer and landlord verifications for all wage earners. Private landlords go through an additional step to verify ownership and validate the reference.

How would you market my property?2021-07-07T15:51:17-04:00

We used a paid marketing syndicate to advertise our properties on 41 different sites. When a prospective tenant shows interest our automated CRM software takes them through the process to schedule a showing 24 hours a day, 7 days a week. We regularly place new tenants in 48 – 72 hours using our proprietary system. Even phone calls at midnight on Saturday are processed immediately using our automation.

How much do you charge?2023-02-07T08:49:13-05:00

Our management fee is 6%/mo., we do not have any hidden fees. There are no start-up fees, or marketing fees and we do not add 10% to vendor invoices. Click here for details on our placement fee and lease renewal fee.

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60 DAYS.
NO COST, NO OBLIGATION.

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