Are you planning to move to a new rental property? Or buy a new commercial property for your business?
Then rent and cost are probably on your mind. Saving money is definitely a top priority, and more so during these uncertain times. Talking about saving money – you might even want to consider renegotiating your rent at your current property.
When we talk about saving money – we either think of moving to a cheaper location or sharing the space with more roommates – very rarely do people think about negotiating the price but negotiating can save you big bucks. According to research in Australia, an excellent negotiating deal can save thousands of dollars in yearly rent (say around 3000 dollars). This money can be put to good use or can be earmarked for future financial goals.
The lower demand has caused the price of the rental properties to drop down – this also puts you as a tenant in the position of power to negotiate your rent. Rental rates are already witnessing a decrease – you can use this to further negotiate the rent of the property you are already renting.
Six tips to negotiate rent like a pro.
1) Do your research and know what you are talking about.
Don’t play fast and loose with your negotiation. Do your research right – you should know the average rent going on in your area. Are there any shortcomings in your property that you can leverage to negotiate a lower rent? Give a realistic figure that can be considered by your landlord.
2) Always do it in person.
Negotiating over texts and emails might not have the desired impact. Negating face to face is the most effective way to crack a deal. This also gives your landlord less time to think over your offer and say yes quicker. Negotiating over emails will give your landlord the time to think of the reasons to refute your deal. This also elongates the process and delays the agreement.
3) Keep your options open.
The most sought-after way to have the upper hand during negotiation is to keep your options open. Always have an option on the backhand whenever you sit to negotiate. The best way is to already have a deal in hand that you would consider taking. This increases the chances of the landlord agreeing to your offer.
4) If you can’t fetch a rent discount, ask for other favors.
If you can’t get a rent discount – you can ask your landlord to sign a more extended agreement with the said rate; you can also ask for renovation and upgrade on your appliances.
5) Give proof that you are a good tenant.
Landlords are always ready to let go of a few bucks in exchange for a good tenant. If you pay your rent on time, are quiet, and always keep the clean house, show this to your landlord while negotiating. Reviews from your past property owners can do the trick.
6) Understand your landlord.
Your landlord is here to earn money. Present the deal in a way that makes financial sense for them. Know when the time is right to ask. If the economic loss from a vacancy of one or two months is greater than the discount you are quoting for, then the chance of your landlord agreeing to your deal increases drastically.