Are potential tenants constantly trying to negotiate your price?
Are you worried that you’ll sour the deal if you don’t discount?
In general, tenants always ask for a lower rate or rent negotiating. It seems like no one wants nor expects to pay full price for anything…period.
But if you’re like us, you want to get a reasonable rate because you’ve priced your property strategically from the start.
Here are a few tips to help you get the price you want without souring the deal:
Anticipate and Accept the Negotiation. You have researched your market, you know the comps and you priced your rental rate accordingly; however, the media has been training customers to ask for concessions so you have to be ready for them to negotiate. Take the time to develop a rational dialog to explain your pricing strategy.
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 nickeled and dimed by hotels – so planting that thought in their heads will keep them hooked on you.
Develop a Relationship. Explain to them that 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 understand price isn’t everything. A good landlord is priceless!
Offer Incentives. Rather than lower your rate or head down the negotiation path, offer instead to throw in an extra service. Maybe you could provide a weekly maid service, 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.
Leave Wiggle Room. While you want to price your property 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 that you can live with. 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.
Learn more about rates in the CHBO Annual Report.