4 Tips For Negotiating Property Rental Terms
For those who’ve been following my blog, you probably know that I am a fan of communication resources. In property investing circles, one of the more popular investors that teach negotiation tips is Rick Otton, and I have applied many of his communication strategies when negotiating property deals. Having said that, people looking for a place to rent can still apply similar strategies to get the best deals out there.
If you are apartment hunting right now, depending on how desperate you are, you might think that you do not have a choice when it comes to lease agreements. Indeed, in many cases, landlords may not be willing to barge on any of their set terms – especially price.
What might surprise you, however, is the fact that many landlords are willing to negotiate the lease terms with their tenants. You see, the more rigid and unfriendly the terms, the longer their property will remain vacant; and every day that property is unoccupied, the landlord loses money. If you just ask, there is a good chance the landlord might be willing to negotiate the lease terms. With that in mind, here are some tips for negotiating property rental terms.
Pick out the right kind of landlord
You need to understand that there are those landlords who are more likely to negotiate the rental terms with their tenants and there are those who aren’t willing at all. Properties run by big rental companies often have the associated rental terms set in stone. Your best bet is to source out independent landlords. These are the decision makers and they are more likely to listen to your case because you will be dealing with them face to face.
Research the area before going into the negotiation
In any negotiation, the more information about the overall situation you have, the better your chance of coming out on top. Do a little research into the general area and see what kind of statistics you come up with in the end. What you need to be looking for include:
- How much the average rent is for that location (for properties within the same class and with similar amenities)
- What the current overall occupancy rate is for that location
- Any disadvantages such as long commute or traffic jams and so on
If you find that your landlord is asking for a bit more than the rest of the property owners or if you find that the general occupancy rate for the area isn’t as high then you may have a case to plead and the landlord may be willing to listen. The lower the general demand the higher your chances of getting a good price.
Find ways to sweeten the deal
Most landlords charge what they do because of the kind of amenities that they offer. For example, you may get a designated parking lot or you may have free access to the fitness centre and so on. Find out what you can do to sweeten the deal for your landlord in way of reducing his overall costs. You could give up your parking spot or keep going to your original gym instead of joining the in-house one. One less user cuts down overall maintenance costs and your landlord may be willing to swing some of those savings your way.
Be upfront with your landlord
Most people like ambitious individuals. Come up with a good reason why you need the discount. Maybe you want to go back to school or maybe you are starting a business and so on. If your reasons are good enough, your landlord might just listen to what you have to say.
Come armed with the right kind of information, the right kind of reasons, your persuasion skills and the right kind of attitude. Most landlords are reasonable human beings, just put your case across and let them decide on whether or not you get the rental discount.