How to Negotiate with Landlord for Good Rental Price?
When you are in the hunt for a new apartment, you probably think that the advertised value is the property’s last price. While it is true in some cases, most of the time they’re not, fortunately. You can negotiate terms with the landlord for better deal. If you are savvier, you can get a flat for a much lower rental fee.
However, before approaching the landlord and start convincing to give you 15% off the rental cost, make sure you have done the necessary research.
- Know Who You’re Talking To
Negotiating your lease is always worth trying. However, there are instances where it is likely more successful. A rule of thumb: independent property owners are more flexible with pricing, compared to leasing companies.
If the apartment you’re eyeing is a property of a large corporation, the rental terms are usually fixed and set, so the person you’re talking to about the unit is usually not authorized to change the rental pricing. On the other hand, independent owners create their own rental regulations, meaning they are more flexible for negotiations and more likely to meet you halfway. Before attacking, know your prospect landlord, and you will be more prepared of the result.
- Be Upfront
Start off your discussion by being upfront without sounding arrogant or bossy. Begin by saying something like, “I’m interested to get your unit, but the rental fee is a bit out of my budget. I would love to hear if we can come up with a price that works for the both of us.” Property owners appreciate frankness and honest, and you will also be able to quickly know whether a negotiation is on or off the table.
- Determine Your Leverage
Know the status of the rental market of Vietnam Saigon—whether it is in a loose or tight market. Tight rental market means there are more people looking for rental space than available apartments for rent; thus, landlords are less likely to negotiate. Why? Because if there are three or more other renters who agree to pay their listed price, the landlord will have less likely to go with your price.
Determine whether the location you want has tight or loose rental market by browsing through apartment listings. How many available units in every building? How fast the open units get occupied? The more days the listings stay open and the more number of available units there is per building, it means the rental market is on the looser side. This is when negotiating is more likely to be successful.
- Talk About Your Being a Responsible Renter
If you wish to negotiate in a tight rental market, try showing off your rental history. Provide proof of income, references from past landlords and even a co-signer if you think it would help. Highlight that you have a stable job and good credit as these are among the primary characteristics most property owners look for in a tenant. All these and a good rental history can help convince a property owner to knock off a little from the rent just to save themselves from the headache caused by a burdensome renter.
- Mention That You’re Planning to Stay Longer
If you talk about planning to stay in the unit for three to four years—or even longer—that’s extremely beneficial in the eyes of the property owner. When an owner needs to look for a new renter every year, he will have to spend a lot of money on transaction expenses (e.g. brokers’ fees, repainting, professional cleaning, renovation, etc.). So, if you are thinking of staying for a long while, do not forget to mention it during your meeting.
- Offer Something in Return
You are also likely to convince a landlord to give you the price you’re asking for if you have something to offer that’s in favour to the landlord’s side. Here are a few ideas you can try to persuade the property owner to your ideal price:
- Giving up the parking space, if you do not own a car.
- Signing a long-term lease.
- Offering to pay three months worth of rental in advance (any property owner appreciates getting bigger sum of rental in advance, and this also demonstrates that you are financially stable—one of the major attributes of a responsible tenant).
- Be Friendly
This one is a no-brainer. When trying to negotiate your terms, make sure to appear friendly, respectful and kind. After all, you are the one asking for a favour.
- Consider Other Options
If everything else fails and the landlord just won’t give in or compromise to meet your terms, consider looking for other options. There are a lot of apartments for rent in Vietnam Saigon; you just have to be patient and smart when deciding which ones to put your time and effort into to try closing a deal.
When looking for a new place to stay, consider short listing a couple of options so you have a few more options at hand if things do not work out on your first try. Once you’re approved and have finally sealed a deal, all the hard work will be worth it.