RENEW or NOT RENEW?

So you have rented out your place to someone and they want to renew the contract, what should you do? What's normally done? How does it work?

OR

You have been on rent and the term is coming to an end and you are wondering what to do. What's best and how to go about the situation etc.

If you are not aware of the answers to the above, then this blog post is definitely for you.

First things first on the topic of renewal - Read the agreement and see what it says if you didn't get it in your favour at the outset. Some owners are smart and generally demand a 10% increment on the second year's rent whereas some tenants on the other hand sign up flat for 2 years for the same rent and thereby eliminate the increment aspect. 

If either of you is thinking about calling it off:

Do your research on this properly, if you are getting a really good deal, then just let the status quo remain. It could be that the prices have gone / down, check out the market rate, talk to a proper property professional who can actually advise on what best could be done. 

It's rare to find many people in Sri Lanka staying on rent for long periods of time unless the place is exceptionally exquisite. The locals generally like to stay for long periods of time but the owners here are not too pleased with the not-so-great lifestyles. A lot depends on the type of person you are dealing with and also the type of client you are turning out to be.