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Can
you negotiate a home lease?
In many cases, yes! Read
on...
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Question: "I found a
great home for lease on your web site, but the price seems a
little high. Is it possible to negotiate the monthly cost of
the lease?...."
Answer: In
many cases,
yes, It's perfectly acceptable to make an offer on a lease
price. but its best to approach it with realistic
expectations. Many landlords are willing to negotiate the
price of the lease, rent, or any of the other terms. There
are several factors that will definitely improve your
chances. If you have great credit and are willing to meet
all of the other terms of the lease, your chances of getting
a little off the rent are reasonably good. Time on the
market is also a motivator, and a landlord with home that
has sat for a long time may be willing to consider a lower
offer.
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On the flip side, If a
home is already reasonably priced, the landlord
will usually refuse to negotiate the rent. Poor
credit or asking for lots of other concessions
will also lessen your chances of getting a price
reduction. Also, be aware that there may be other
offers on the table. All things being equal, the
landlord and his/her agent will usually give
priority to an applicant who submits a full price
offer.
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A few other
things to keep in mind:
Make sure your
offer is reasonable. Landlords are
business people who expect a favorable return on
their investment. Don't insult them with a
low-ball offer. Expect to pay a fair price for a
nice home.
If the Landlord won't
lower the rent, try for other concessions. In lieu
of lower rent, perhaps the Landlord would be willing to
accept a lower security deposit, or would be willing to
pay for some of the services like water, trash, etc.
Avoid asking for the
sun, moon, and stars. A landlord may be willing to
lower the monthly rent, but will be put off by too many
requests for concessions. Its OK to ask for a few things;
just don't go overboard. Also, don't continue to ask for
more once your initial requests have been granted. I have
seen too many cases in which the rent and other terms were
successfully negotiated, only to have the prospective
tenant come back with additional requests for concessions.
This isn't good business, it's sneaky business. Be straightforward and simply ask for what you
want, up front.
Don't expect concessions
if you have bad credit. If you have had a credit
setback, your main focus will be to convince a potential
Landlord that you are willing and able to pay the monthly
rent. Don't lower your chances of getting the house by
also asking for discounts.
The bottom line is that it's
OK to negotiate a lease. I do it all the time for my
clients. Understand however, that many landlords simply
won't negotiate and if you insist on a lower price, you
may lose the home to another applicant. Be sure that you
weigh your chances of locating another house against your
desire to try to get the price you want. My advice is to
be flexible and be prepared to give something in
order to get something. A bargain is best when both
parties benefit.
In summary, your
chances of negotiating a lower lease are increased, if:
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Your offer is reasonable and sincere
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The home has been on the market for an extended
period of time (landlord may be getting
"motivated")
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The home is priced above the market (there
is room to negotiate)
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There are no other offers on the home
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You have excellent credit (high FICO score, low
debt, no derogatory items)
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You fit the desired profile for the home (no
pets, non-smoker, etc)
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You are ready to move in by the desired occupancy
date
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You are willing to pay the requested security
deposits and other costs
Your chances of getting a lower
lease price are reduced if:
Footnote: I was browsing another
web site on lease negotiation, which stated, "The
best negotiation time is during the signing of the lease
when the landlord has approved you...... and is ready to
close the deal" . I strongly disagree with this
advice and find it to be unethical and dishonest. I recommend
instead that you be up-front and honest, by asking for all
lease terms at the same time that you present your
application, credit report, and references.
If you have
any other questions on leasing, please contact me at
(949) 290-3263 or by e-mail at ronforhomes@gmail.com.
I will be happy to answer your questions. I specialize
in helping people with leases in Coto de Caza, Dove
Canyon, Rancho Santa Margarita, Ladera Ranch, Mission
Viejo, Las Flores, Robinson Ranch, Rancho Cielo,
Coastal communities, and the Santiago Canyon
communities, in Orange County, CA. My goal is to
negotiate the best lease terms possible for the home
of your choice. Call me today to see how I can help
you!
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