A rental property has a fixed price before the property listings hit the market. The landlord decides on the amount based on what the property has to offer. Is it located near supermarkets and schools? Does it have a swimming pool? These are just examples of what to consider in setting a rental price. The monthly rent can either attract a tenant or turn them off, so the price must be fair.

However, do not be shocked if some tenants will negotiate the price. It is not unheard of, especially if the tenant has been a client for some time. If the tenants are good, some landlords might be amenable to making adjustments. Read on and find out what happens if the tenants want to negotiate to lower rent.

Lease Renewal

Some tenants will hear of other properties that might be better for them. However, they may also want to stay in their current rental. If they think their landlord can change his price, they will try to negotiate it. In exchange for lowering the monthly rent, the tenants will renew their lease.

It does not exactly mean that it only works to the tenant’s advantage. When you think about it, the landlord would keep a tenant and the income stability that goes with it. We all know that there are good tenants out there. Good tenants are those who pay the bills on time and do not cause trouble. If the tenant is good, the landlord might consider lowering the price to keep them. Some tenants are worth it.

Check the current market.

The tenant may check out other properties for comparison to show their landlord the current trend. The landlord should also do his research on this. The real estate market is always changing, and that includes rental prices.

The landlord may not have changed his price for a while, and it may be time to do so. The current cost might be higher compared to other properties in the area. It might compel the tenant to choose a cheaper rental with the same amenities. The landlord should think about matching the prices out there.

Weigh the expenses

If the landlord refuses to lower the rent, the tenant may also refuse to renew their lease. Once the lease ends, the landlord will have a vacancy to fill, and that costs money. Finding a new tenant would mean spending money on screening applicants and preparing the property to attract clients.

And if they hire a leasing agent such as yourself, it is an added expense too. Nevertheless, the cost of hiring you will be worth it, specifically if you advertise their property on Padleads. For a small amount, you can post property listings for tenants to check out. And bonus, you can syndicate those listings to other websites.

But once the landlord sees that decreasing the rental price is a better deal, he will probably go for it.

Negotiation process

During the negotiation, the landlord must not think negatively about the idea of lowering the rent. It still has its advantages, and the tenant deserves to present their case. Keeping an open mind during the negotiation is a must, and saying no immediately will not help. The negotiation will take a while. The landlord and tenant will go back and forth before they find a compromise.

Alternatives

The landlord may or may not agree to lower the rental price. He may feel that the asking price is too low, and he still has to think about his income. However, he can keep his tenant by offering them other incentives if they renew their lease. For example, the landlord can offer to have the property painted or offer freebies to them.

A good landlord must be flexible and understanding of their tenants. The best thing to do is to think if the decision to adjust and change is worth it. If the tenants are the best kind, I don’t think a little adjustment is too much of a burden.