I just had my clients finally finish signing a lease for a home that they will occupy soon.  It  was the most difficult and time consuming endeavor that Ihave ever experienced. I represnted a family of ten who are relocating from Florida, a most difficult situation for not only them, but also for me.  Not too many landlords want 12 people in their home for any length of time- not family, not tenants.  But, I must explain, this is a special family. The mom worked in Florida with the legal system who placed children for adoption in private homes.  Four of my client's ten children are  biological, the other six children are adopted children who had minor mental or physical disabilities.

The problems began with the  posting of the property on Craig's list.  Sandy, the listing agent, did her job and posted it both in the MLS and on Craig's List; however, the landlord also posted it, too.  Unfortunately in the middle of  negotiating the terms, my client decided to call the landlord to try to explain her situation.   Of course neither I nor the other agent knew this was happening.

It became "the telephone game."  He said, she said, with words getting misconstrued and anxieties growing by leaps and bounds.  How simple it would have been to allow the professionals to do the negotiating.  The situation and terms of the contract would have been resolved easily. 

This became the perfect example of what can go wrong when verbal agreements and obligations are left to  the tenants, landlords, buyers or sellers.  Everything looks simple enough.  A lease is pretty straight forward.  However, verbal offers are nonbinding; therefore when contracts are written and terms are in writing, agreements become clear and precise.  With verbal agreements, words are clouded by the tonal influences of speech, inflection, etc.  obligations, agreements, and people are caught in the moment. Communication and terms in a contract are precise and well thought -out    It is so important, even in lease agreements, that the art of communication be given to the professionals and terms they negotiate are in writing. 

Professional dancers make dancing look easy; professionals do just that, they make it look easy.  However, we all know that education, practice, and the ability to do the things we do take skill and practice. Let us do our jobs so tenants, landlords, buyers, and sellers can benefit from the service we provide and the experience and knowledge we have.

 

 

4 Comments on Negotiating Lease Agreements

Leases are so tough. I do not do them because I am all about less aggravation. You wrote an interesting post thanks for sharing. Especially as you re affirm my convictions

07/22/2008 07:34 AM by Charlie Ragonesi Big Canoe homes, Jasper ,Ball Ground,Benttree,Dahlonega (All Mountain Realty)


That is the difference between empathy and sympathy, skillful knowledge & emotion.  There is a purpose in mind but emotion & sympathy is a train wreck waiting to happen!  Leave it to the professionals.  Great post!

07/22/2008 07:38 AM by Sara Homan (Coldwell Banker Ellison Realty Inc)


Tanya, these "exclusive Agency" type agreements when one office represents a seller/landlord, but the owner has the right to find his own buyer/tenant are doomed to failure. I wouldn't take a listing where the owner/seller has the right to find his own deal. If he/she thinks they can do it better let them when they give it to a broker to deal with then the negotiations are ours to deal with period.

Steve

07/22/2008 07:43 AM by Steve Loynd, Alpine Lakes Real Estate Inc., Loon Mt, NH.


Steve,

I don't believe the other agent took the listing allowing the landlord to have the right to find his own tenant; the mistake was that we should always make sure the owner/ landlord understands that it is our responsibility to market the property and get it sold/rented without any input from them. 

Another important detail which my client discussed with the owner was that their intention was to find a home in the area that they might want to buy after the sale of their Florida home.  Upon hearing this, the owner thought this would be a great opportunity to have a buyer in 12 months or less who would be an unrepresented.  I am sure she thought the listing agent would not find out and that she and my tenant could work out a deal.  I am not sure what the listing agent's agreement was with her in terms of selling the property to a tenant.  I know that I most likely would have been cut out of a commission unless my tenants fully understood the consequences of not having me  represent them.  After much discussion with my  clients, they did confirm that they would not have taken the seller up on any proposition without me.  They saw the difficulty they had with the lease agreement, imagine what it would have been if it had been a purchase agreement!

Experience is the worst teacher; it gives the test before presenting the lesson."

                                                            --Vernon Law

 

07/23/2008 06:27 AM by Tanya Spotts Loudoun County Real Estate, Blogger (Long & Foster Realtors)


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Real Estate Agent: Tanya Spotts Loudoun County Real Estate, Blogger (Long & Foster Realtors)
Tanya Spotts Loudoun County Real Estate, Blogger
Leesburg, VA
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