How Tenants Can Safe Guard Their Investment: Some Helpful Points For Tenants To Safe Their Investment

In most cases, tenants lease properties that are in a moderately decent condition. Then there are those tenants who lease properties from landlords for properties that requires extensive renovation. Such properties are rented on an "as is and where is basis", with a tenant usually getting a long term lease ranging from five to 10 years and beyond. Tenants usually rent out such properties because they feel that the landlords will rent them the property at a considerably lower rate, due to state of the property.
After the tenants/lease agreement is signed, the tenants renovates the property at his/her own expense, which in some case runs into million of dollars.
All is well till the tenant and landlord meet near the expiry of the initial tenancy/Lease agreement. It is usually this time that landlords conveniently forget the condition in which the property was rented out and usually demand a higher rent then the prevailing market rate to the tenant who has already spent a lot of money in renovating the property in question.
The thinking from the landlord's point of view is that the tenant will rather pay the higher rent then forgo the millions investing in renovated the premises. The question at this point is: How can Tenants safeguard their investment?

Here Are Some Useful Tips For Tenants:

1) Take photographs and make the video of the property before singing the first term of tenancy.Lease Agreement, so that there is the proof of the condition in which the property was handed over to the tenant.
2) Always put an upper cap on the rent for the renewed term in the initial lease, so that in case of renewal of tenancy/lease agreement, the landlord cannot demand an exorbitant rent.
3) The pay off period of the cost of renovations must also be mentioned in the tenancy/lease agreement to ensure that the landlord asks for a fair rent when renewing the agreement for the second term.
When negotiating, landlord should realize that if the current tenant doesn't renew the agreement, and vacates the premises, it will extremely difficult for them to rent the same property to another tenant at a similar rate.