Great Tips for Negotiating a Higher Rent from Your Tenant
Rental negotiation can be pretty tricky if you do not have the know-hows. A poorly-prepared landlord would not be able to offer good counter-offers to convince his or her tenant that the rental was reasonable. In the worst case scenario, he or she might even miss a chance to grab hold of a good tenant due to poor negotiation skills and a lack of perception for long-term gains.
So, as a landlord, how should you negotiate to ensure you get the best deal without forgoing the long-term gain? Check out the great tips!
Do Your Homework
If you fail to prepare, you are pretty much asking to prepare for failure – this same principle also applies to rent negotiations for both the landlord and the potential tenant.
Be sure to familiarise yourself with the market price of property rental within your area. This doesn’t only help you with setting a price that is suitable and competitive for your area, but it would also deter potential tenants from trying to pull a bluff on you by claiming that others are offering better rates than you when you aren’t. At the same time, a good knowledge of your facilities and the strength of your strategic location in comparison to other competing properties could also offer you the leverage to put a slightly higher rent from everybody else – and to convince your potential tenant that it would actually be worth paying that few extra bucks for these perks.
Make Sure Everybody Wins
Just like in any other forms of negotiation, always strive for a win-win deal. Money isn’t the only thing that is involved in the relationship between a landlord and his or her tenants – even if it is a business one, it is still a relationship involving two human individuals.
Be reasonable – it is not a bad idea to consider reducing the rent a little in favour of the potential tenant if you feel that he or she is worth keeping. A tenant who keeps your property clean and well-maintained goes a long way especially in reducing future expenses and inconveniences on your behalf. It would also be a big bonus for you if that tenant does not smoke, bring in pets or cause disturbances to other neighbours within the neighbourhood.
Take too long and you will also most probably find that your potential tenant has been snatched away by another landlord who is better and quicker in negotiating than you! Always bear in mind that your potential tenant is also most likely surveying other properties at the same time it is considering yours – so, the best approach would be to make a good offer during the first meeting itself that would hopefully make your potential tenant feel that he or she would not be able to get it elsewhere.
As you can see by now, the whole affair is more than just merely sitting down and winning arguments to earn easy profits – it involves effort, attention, communication skills and a good eye for long-term gains – and we in Roomz Asia hopes that this article has enlightened you enough to pull off a successful negotiation!