What does the term "intelligent renewal" refer to in leasing?

The term "intelligent renewal" in leasing typically involves making strategic decisions about lease renewals that take into account various factors, including market conditions and the specific terms of the current lease. Choosing the lesser or greater of the last month's rent rate or a contract rate reflects a nuanced approach that seeks to optimize the renewal terms based on the most advantageous conditions.

This approach allows landlords and property managers to adapt to current market trends and ensure that they remain competitive while also considering the financial viability of the lease for both parties. By evaluating whether to renew at the last month’s rent or the contracted rate, they can tailor the renewal process to the specifics of the situation, enhancing tenant retention and maximizing rental income.

The other options do not encompass the strategic nature of "intelligent renewal." Automating all renewals is efficient but does not allow for the tailored decision-making that characterizes intelligent renewal. Renewing leases without tenant communication can strain relationships and overlook tenant needs, while using a fixed percentage increase disregards the specifics of each lease, limiting flexibility in negotiations. The essence of intelligent renewal lies in the thoughtful evaluation of lease conditions rather than adhering to a one-size-fits-all approach.