The Art Of Negotiating Rent: Tips For Tenants And Landlords
Negotiating and reaching your desired rental price is an art. The landlords and tenants both want to finalize the price they want. And it has rightly been said, “Unless you ask for it, you are never going to get anything.” Knowing the art of negotiation can help establish a mutually beneficial relationship between a landlord and a tenant.
Here, we have come up with tips for both tenants and landlords to negotiate their deals effectively.
Tips for Tenants To Negotiate Rent
Want to put a couple thousand dollars more in your pocket? Learn some tips for negotiation for tenants here.
Keep in mind the exact number you want
If you decide to be part of the negotiation deal without preparation or without keeping in mind the approximate rent amount you want, your landlord has the control of quoting the price of their wish. So, know exactly what figures you want to get as a result of your deal. This number can vary from person to person as well as area to area.
Furthermore, negotiating rent doesn’t always have to be in terms of cash. You can ask your landlord for some other perks like free parking, allowing pets without any additional fee, or free or partially paid utilities. Even if you are unable to get exactly what you want, negotiate for such features to save some money.
Understand the nitty-gritty of the market.
Timing plays a key role when you consider negotiating the rent. Property rates aren’t always the same. They go through their feast and famine. Sometimes, the landlords have plenty of empty units that they want to rent. At other times, the periods arise when the list of renters is long, and they knock on every other door to get at least one home on rent. Knowing the timings of the negotiation is thus essential to convince the landlords at a lower rate.
Besides, research thoroughly what are the current rates in the market. Develop a clear understanding of the amenities available near the property/home you are considering. Compare similar properties and find the things they are offering. You can even try getting a competing rate in writing if it is less than the one being offered to you. Take it with you at the time of negotiation. It works as a wonderful tool when it comes to negotiating a lower price for a similar property you are considering.
Offer something in return.
You want a certain amount of price as your rent, so you have to do something for it. Find out what you can offer in return for the price you want to get. For instance – You can consider prepaying your rent months in advance, sign an extended lease, offer to extend your existing termination notice (Like from 30 days to 60-90 days), etc. Clearly, knowing what you and the other party want increases your chances of getting success in the negotiation.
Tips for rent negotiation for landlords
We have discussed the art of negotiation for the tenants. Now let’s discuss the same for the landlord and what they need to do in order to get their said rental price.
Preparing for rent negotiation
It’s time to do some math to prepare yourself for the rent negotiation. It depends on a number of factors, like whether you want to rent the property to a new tenant or raise the rent amount for an existing one. Research the listings of similar properties as yours and make comparisons in terms of location, size, and quality. Calculate the minimum amount of rent that is feasible for you to accept and then set the right rental price. Decide what terms you can agree to in a negotiation and what terms you can’t.
If you are negotiating with the existing tenants, balance the cost of the rent increase with the cost of turning over the unit. If your tenants disagree with the valid rent increase, let the tenant go away, or you can offer some additional services that will cost you less than lowering the rent.
Take your time to evaluate offers.
As a landlord, you feel a sense of joy when you secure a prospective tenant. But don’t rush into things and accept the first offer coming your way. Evaluate and compare each offer carefully. If the first offer doesn’t exactly meet your expectations, be patient and wait until more potential tenants show interest in your deal.
Express your reasons
You need to be transparent with your negotiations while discussing things with the tenant. Express clearly your reasons for changing certain terms and conditions of the rental agreement. When tenants understand your reasons behind changing the pricing decisions, they are more likely to accept your decision and reach a mutually satisfaction agreement.
Approach the negotiations with research, open communication, and professionalism to maintain housing stability and secure favorable terms. Ultimately, both parties should aim to strike a balance to ensure everyone involved in the agreement is satisfied with the result.