Negotiating rent on a property
Discussion
I have seen a property I think looks like somewhere I'd like to rent.
I don't know how long it has been empty but I can't imagine many Landlords who would want a property empty for long.
My question is this. If I were to offer to pay a full 12 months rental up front what kind of negotiating power might that give me if any?
I don't know how long it has been empty but I can't imagine many Landlords who would want a property empty for long.
My question is this. If I were to offer to pay a full 12 months rental up front what kind of negotiating power might that give me if any?
My tactic with landlords is to make the transaction as attractive as possible - eg tell them you have the cash deposit ready to transfer now, references at the ready, phone number for previous landlord and so on.
As you say an easy transaction that goes through the same day is worth the discount over one where they get messed around and lose a month's rent.
As you say an easy transaction that goes through the same day is worth the discount over one where they get messed around and lose a month's rent.
Question is firstly is the advertised rate taking the p*ss or inline with the market?
Secondly is it vacant now or is it going to be vacant from x date in the future?
If say you are offing £900 when its up for £1200 and £900 gets you a bedsit and your looking at a 2 bed then you may not be taken seriously. The risk with going in with too low an offer is that the final price you settle on will be higher than if you had started with a more realistic starting point.
Personally I don't haggle I bid a price for a house car etc one price and its the price I think its worth. Sometimes I have bid the asking price as I've checked up on the area know its a good deal and want to secure it.
Take our house we could have punted £5k less however before we bid we knew there was a huge amount of interest (3 houses sold in the street of 35 within 10 years... most owners being 20 year+ owners etc)we realised that £5k to potentially lose the property just wasn't worth it. As such in that situation we bid asking price they accepted (turns out they had 10 offers that same day all c£5k under SO glad we took the right approach).
On the other hand we bid for a car (Leon) it was up for c£2.3k.... we ahem bid £1.1k. Didn't budge.... even left the premesis - then later that afternoon call will accept the offer.
A number of times have lost of course par for the course. But only pay what you think its worth but do your homework. Just because you'd like 10-20% off doesn't mean it will happen.
As a landlord myself I price my rentals keen (I can afford to as I bought them all so so long ago that I can make big yeilds and beat market prices) as such in the 15-18 years I've been in the game only once have I been bid and it was for £25 off pcm (on a rent of £1k) I accepted due to the fact we were on a months overseas vacation .
Secondly is it vacant now or is it going to be vacant from x date in the future?
If say you are offing £900 when its up for £1200 and £900 gets you a bedsit and your looking at a 2 bed then you may not be taken seriously. The risk with going in with too low an offer is that the final price you settle on will be higher than if you had started with a more realistic starting point.
Personally I don't haggle I bid a price for a house car etc one price and its the price I think its worth. Sometimes I have bid the asking price as I've checked up on the area know its a good deal and want to secure it.
Take our house we could have punted £5k less however before we bid we knew there was a huge amount of interest (3 houses sold in the street of 35 within 10 years... most owners being 20 year+ owners etc)we realised that £5k to potentially lose the property just wasn't worth it. As such in that situation we bid asking price they accepted (turns out they had 10 offers that same day all c£5k under SO glad we took the right approach).
On the other hand we bid for a car (Leon) it was up for c£2.3k.... we ahem bid £1.1k. Didn't budge.... even left the premesis - then later that afternoon call will accept the offer.
A number of times have lost of course par for the course. But only pay what you think its worth but do your homework. Just because you'd like 10-20% off doesn't mean it will happen.
As a landlord myself I price my rentals keen (I can afford to as I bought them all so so long ago that I can make big yeilds and beat market prices) as such in the 15-18 years I've been in the game only once have I been bid and it was for £25 off pcm (on a rent of £1k) I accepted due to the fact we were on a months overseas vacation .
As a landlord I have to be asked for a discount, nor would I give one....
Only been renting 2 houses out for 10ish years now and not had many changes of tenant, in fact one is just coming up and have put the rent up by £100 (to £850pcm)....don't advertise at all, all word of mouth so no fees to pay either.....
I wouldn't give any discount for paying a year in advance as it's of no use to me at all.
As had been said depends on whether the price advertised is good, how much you like the flat and whether it's in a popular area, all factors for consideration when determining if an offer would be worthwhile
Only been renting 2 houses out for 10ish years now and not had many changes of tenant, in fact one is just coming up and have put the rent up by £100 (to £850pcm)....don't advertise at all, all word of mouth so no fees to pay either.....
I wouldn't give any discount for paying a year in advance as it's of no use to me at all.
As had been said depends on whether the price advertised is good, how much you like the flat and whether it's in a popular area, all factors for consideration when determining if an offer would be worthwhile
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