How to broach the topic of rent negotiation on an owned condo? (lease, tenant)
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Just doing my homework here. I've got my eye on a place for rent, and I'm scheduled to take a tour with a realtor later this week.
One of the initial red flags was that there are a BUNCH of units in this building available for rent/sale (the units were sold as condo units and now they're being rented out by some of the owners and possibly the building itself....I'm still trying to get more information on that).
While I plan on investigating said "red flags" (i.e. "is there something wrong with the building that all these units are available?"), it also got me thinking about rent negotiation. If I should determine that the building is in decent order and I want to rent there, I think an opportunity is there to bargain the rent a bit.
The things in my favor:
There are a lot of units available, proportionately speaking, in the building. (about 15% for sale or rent)
Some of these units, including the one I'm looking at, have been on the market for 1-2 months+.
The things not in my favor:
My credit is poor, one of the reasons I'm renting to begin with.
My rental history is also questionable, as I had to break a lease at my last place from a layoff at work.
So I'm interested in any relevant advice....
-Am I even a candidate for rent negotiation, given the pros and cons listed above?
-If so, how would I begin that process? I'm aware of the arguments for doing so, but how to bring them up without potentially souring my initial relationship with my future landlord?
If the rates are fairly priced for that market area, the landlord is likely to feel you could be a problem tenant, always wanting to negotiate everything. I know some landlords make it a rule to reject anyone who tries to negotiate the rate downward. Especially if there are other negatives in your past record as a tenant.
I'd start by evaluating what is a fair price and then determine if it is worth talking about.
As a landlord, if the rental market is strong there is no reason to entertain a decrease as someone else will be willing to pay.
However, if the market is weak in your area, you might have a chance if you can point out what makes you worth the reduction. When one of my tenants lost their job, in exchange for an early contract release, they agreed to leave the house spotless. They did so it worked out well for both us and I quickly got a new tenant with little hassle. You have to bring something to table the landlord wants.
I also agree with CptnRn, that when come on looking for a reduction that you wouldn't be on the top of my list as renting property is about getting what the market will bear.
To follow up on the questions posited in the previous posts:
I believe our rental market in general could be rated a C-, perhaps a bit weaker than average. There are many units available for rent in the area, though not so many that the market is crashing or anything. As for the rates for the market, this building is more expensive than most, but it as designed as a high-rise/luxury building in an area that doesn't have many similar buildings, so I don't believe I can call the pricing "unfair".
Many of these units were meant to be sold as high-end condos, but the timing of the building construction coincided with the market crash, so many of them went unsold and are being rented now (there's a LOT of this in Vegas, I'm currently in Phoenix).
I certainly wouldn't want to start things off on the wrong foot with a potential landlord by strong arming a negotiation where one wouldn't be appropriate, but that's why I'm here...to get a feeling for what's "appropriate".
Summary: The price for the units I'm looking at are fair, though higher than others in the area. Market is "meh".
Tentatively, my plan is to see if there's any wiggle room at this particular building. If there isn't, I'll continue looking (I'm not in a rush). These units aren't going anywhere.....as mentioned, many have been on the market for months already. Thanks to everyone for your help, though...I'm still learning here!
With a low credit score and iffy rental history, you can't afford to be so picky. You're considered a risky tenant and by asking for a lower rental rate right off the bat, is a huge red flag.
I might drop the rent by $25 for a really superb tenant, but not for someone with bad credit, a bad rental history, and a bad landlord reference. In fact, I would not rent to that person at all. I'd rather have my house sit empty.
I suggest that you look at all the units in the building that are for rent. They can't all be priced the same. You could rent the one with the lowest rent if saving a few dollars is really important.
With a low credit score and iffy rental history, you can't afford to be so picky. You're considered a risky tenant and by asking for a lower rental rate right off the bat, is a huge red flag.
Fair enough, this was a strong concern of mine and I'll keep it in mind.
Side note: The realtor actually no-showed the tour today. I showed up, nobody. Called, voicemail. Waited 15 minutes, left. He called me 15 minutes after (so 30 minutes after the appointment), said "oh....I'm sorry, I couldn't get you in there today" and offered to reschedule. Yeah, right.
Other side note: I obviously didn't mention any of my red flags, so I can't imagine I was screened. But seriously? No call, no cancellation...just didn't show up. Wow.
I might drop the rent by $25 for a really superb tenant, but not for someone with bad credit, a bad rental history, and a bad landlord reference. In fact, I would not rent to that person at all. I'd rather have my house sit empty.
I suggest that you look at all the units in the building that are for rent. They can't all be priced the same. You could rent the one with the lowest rent if saving a few dollars is really important.
That's a good idea. In this case, it's a high rise, so the prices vary by floor. I am (or was, see previous post) prepared to pay the normal price, assuming everything else checked out. I just saw an opportunity since the units have been on the market so long.
Thanks everyone for your input!
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