What is typically favored in lease negotiations regarding options to renew?

In lease negotiations, having higher rental rates included in options to renew is typically favored by landlords. This is because landlords aim to protect their investment and ensure that rental rates keep pace with market trends. As property values and rental prices generally increase over time due to inflation and demand, including an option for higher rental rates helps landlords maintain the profitability of their property.

By allowing for increased rates upon renewal, landlords can adjust to market conditions and avoid locking themselves into an agreement that may result in lower income relative to comparable properties in the area. This approach provides them with a safeguard against rising market prices, ensuring they are not at a disadvantage when new lease terms are negotiated.

While lower rental rates, no change in rental rates, and flexible payment terms may be appealing to tenants for various reasons, the context of lease negotiations often highlights the landlords' preference for options that align with economic realities and the growing value of real estate.