As a landlord there may be times when it’s hard to get tenants to rent your property. Even though prolonged rental vacancy is something that doesn’t happen very often, the frequency of it differs from one real estate market to another. If you are having a hard time getting someone to rent your space, it may be time to negotiate and bring down your rental expectations, just a bit, so that you can fill your vacant apartment units without running a loss.
If you face such a challenge, you may want to think about negotiation tactics. When considering the marketing conditions and the tenant screening of prospective tenants, negotiating the rent might prove to be a wiser decision than waiting for the rental vacancies to be filled.
Here are some tips for knowing when it might pay to negotiate the rent with your prospective tenant. These are the five common circumstances where negotiating the rent is beneficial and will help you to fill your vacant property quickly.
When you are in a renter’s market
When economic conditions are in favor of tenants to the point that rental vacancies are many and the demands few, it’s called a renter’s market. In such circumstances, it is more beneficial for landlords to negotiate the rent than to keep the apartment units vacant for several months.
When your previous tenants moved out months ago
Sacrificing a month’s or months’ rent for too long can be hard to make up. If you have many vacant apartment units for more than one month, it is probably the right time to consider negotiating with prospective tenants.
When you lack special amenities or perks
In an effort to attract tenants, landlords often waive some fees or pay for the tenant’s internet connection or home care service. If you cannot offer such perks to your tenants, negotiating the rent may work for you to fill the vacant apartment units quickly.
When you have a high-standard prospective tenant
When you have a prospective tenant, who passes your tenant screening with flying colors, meets your income requirements, has a stable job, and gets outstanding reviews from former landlords, negotiating the rent might pay in the long run. If this prospective tenant is willing to sign a long term lease, such as a contract of two years, negotiating the rent can prove highly beneficial for you.
When your apartment units are overpriced
If your unit is overpriced in comparison to the other properties in the locality, it is better to negotiate than to let the prospective tenant walk away and rent some other place for less. Often, tenants research and learn about the prices of similar units in the same area. So, if the rent of your unit is much higher than others in your locality, you may want to negotiate the rent close to the rate of other comparable units.
Another added benefit, when negotiating the rent, is that you can get to add some specific, reasonable conditions. For instance, you might get your tenant to agree to pay before the first of every month,or to pay the rent of the first few months up front since you are lowering the rent. You may also ask for an 18 or 24 month lease or any other conditions that tenant can fulfill and you can benefit from.
