It’s likely many of your leads are asking you for a price break these days. Even I was asked for a deal when I sold my rental home a few months ago.
It seems like no one wants nor expects to pay full price for anything these days… period.
But if you’re like me, you want to get a reasonable market rent because you’ve priced your home strategically to begin with. I’ve come up with a few tips to help get the price you want without souring the deal:
Anticipate the Negotiation: You have researched your market, you know the comps and you priced your property accordingly (and yes they probably know the comps too), however, the media has been training them to ask for concessions so be ready for them to negotiate and don’t get frustrated and walk away from a possible good deal. Take the time to develop a dialog.
Give them Understanding: Everyone wants to know their needs are being listened to and understand what they’re paying for. If someone is stuck on price and they’re trying to get a lower rent rate from you, make sure they know that if they went to a hotel, they would have to pay for parking and Internet usage and other hidden fees. With you, it’s all inclusive – turn-key! Some times renters need a little understanding of all the great add-ons they get with your property. And you can rest assured that most of us hate being nickel-ed and dime-ed by hotels – so planting that thought in their head will keep them hooked on you.
Develop a Relationship: Explain to them that as their landlord you will take good care of them and they’re in good hands. Illustrate how your previous or current tenants have enjoyed the property. Making them comfortable with you as a landlord will make them see that they’re not getting a run-of-the-mill property to rent – but a thoughtful landlord too, which is priceless!
Offer Incentives: If a homeowner is stuck on price, rather than lower your rate or heading down the negotiation path, offer instead to throw in an extra service. Maybe you provide a weekly maid service or a discount if they agree to a longer lease or a monthly metro pass to use public transportation to get to work. Think outside of the box. If you also own a vacation rental offer a discount if they choose to rent it for their next vacation. This way you can get two properties rented in one deal.
Leave Wiggle Room: While you want to price your home as strategically as possible, go into
the process knowing everyone wants a deal. Set your rate and then cushion it with a little wiggle room. This way you can still price yourself competitively and negotiate to make your renter feel like he’s getting a deal. A win-win for all!
- Rent Negotiating Strategies – how to get renters to pay your rate
- Rate Setting Strategies For Corporate Rental Properties – Keep an Eye on The Competition
- When is the Housing Market’s Black Friday?
- Should you play “Let’s Make a Deal” with renters, buyers and everyone in between?
- Should You Raise Your Rental Rate?