Great ‘How to haggle down rent’ Hunt

rl290

Hello, thought I'd add my negotiating strategies to the mix. FYI, I am a Landlord, (a good one like all the others on here...), and have rented several times, although I'm currently living with family. The "tactic" below has worked well for friends and I when either renting or buying property...

First, I am never too fussy - all I need is a 1/2/3/whatever bedroom flat within 15mins walk of public transport/tube station/whatever. Personally, I also look at only non-ground/basement flats. Beyond this, I really don't care about much else. Obviously I like the place to be in a reasonably maintained condition (no damp), but I don't care too much about the layout, window view, wall colour, type of furniture etc... Basically I keep the list of possible flats I could move into as big as possible.

Next, I contact the five biggest lettings agents in the area (as well as any private landlords that catch my eye, though they have been limited in places where I have lived). I arrange to spend an hour with each of them viewing as many properties as possible, and make sure all the appointments are as close together as possible (ideally within the same week). I am more than happy to be transparent and let the agents know that I am viewing properties with other agencies if asked - none have ever refused to serve me on this basis.

With EACH agent, I make a very low offer on one property I have viewed with them that I either: (a) like the most (b) think has the best possibility of a significant rent reduction (say if I know it has been on the market for a while - thanks propertybee!). Now, I would like to stress a few things. Firstly, I am always open with agents in saying that I have made another offer elsewhere, and my final decision depends on the other offer - I have never had an agent refuse to take an offer on this basis, and it often makes them keen to get their client to reply quicker than usual. Second, some agents charge you for making an offer. This is totally egregious. Landlords typically pay 10% of the ANNUAL rent just for the letting agent to find a tennant, as well as up to 5% on top if they are to manage a property during a tenancy. That 10% includes the cost of marketing the property and drawing up contracts - so I refuse to pay for it again. Either they put in the offer with no fee, or they never get me as a customer again*. Finally, make the offers LOW. This is probably easier to do depending on who you are - as a single man, I really don't care too much so long as I have a bed, living room and kitchen. So, when I see a gorgeous flat, I really don't care about having all the extra frills. I imagine a family with children would be (understandably) more picky, but try to be as flexible as you can. I see renting as more of a business transaction than a life-defining accommodation choice.

A few days later, you will (hopefully) have several offers available to pick between.

When buying property as an investment (obviously not a great idea in the present market), the same tactics often work - you shouldn't care about the exact property; rather you should be infinitely more concerned that it's at the lowest price.

R

* I usually say: "Look, I have an offer with another agent that I will hear back on in the next two days. If I can't make an offer with you for free, here and now, you and your client won't be getting any of my rent mony...."

maggienetball

I am currently trying to get my rent reduced but so far no luck. I moved in here in mid december and immediately found the place intensely cold. On checking I discovered that there was no insulation anywhere in the house (large detatched property set high iup and exposed. The windows are all shot and the basement is under the lounge and the wind howls through the carpet and floor in there. Top that with the fact that the carpets are worn out and stained. These things did not show up when we looked around. Also, despite being included in the tenancy, the basement is full of their stuff and we can't use it, the garage was full of their stuff til last week and we couldn't use it and 1 of our reception rooms had no carpet and 1/3 full of their furniture (unfurnished tenancy)
They are have agreed to replace all the windows, which will be completed in 4 weeks time. They have also agreed to have part of the roof replaced in the next 2 months, but we have to live through all these works and have had to pay so much extra in heating.
I have tried asking for a rent reduction but they say they need the money for the repairs. I have tried showing them similar properties in better condition but they say they have been told that their property is worth more than they're charging (it so isn't). I don't know what to try next.
They are lovely older people and and kind in many ways. They try hard to do everything they say but I can't swing them on this one. What does everyone else think?

barnaby-bear

maggienetball wrote: »

I am currently trying to get my rent reduced but so far no luck. I moved in here in mid december and immediately found the place intensely cold. On checking I discovered that there was no insulation anywhere in the house (large detatched property set high iup and exposed. The windows are all shot and the basement is under the lounge and the wind howls through the carpet and floor in there. Top that with the fact that the carpets are worn out and stained. These things did not show up when we looked around. Also, despite being included in the tenancy, the basement is full of their stuff and we can't use it, the garage was full of their stuff til last week and we couldn't use it and 1 of our reception rooms had no carpet and 1/3 full of their furniture (unfurnished tenancy)
They are have agreed to replace all the windows, which will be completed in 4 weeks time. They have also agreed to have part of the roof replaced in the next 2 months, but we have to live through all these works and have had to pay so much extra in heating.
I have tried asking for a rent reduction but they say they need the money for the repairs. I have tried showing them similar properties in better condition but they say they have been told that their property is worth more than they're charging (it so isn't). I don't know what to try next.
They are lovely older people and and kind in many ways. They try hard to do everything they say but I can't swing them on this one. What does everyone else think?

If the stuff they are storing isn't on the inventory i.e. you haven;'t signed and agreed to keep it, you should have full possession of the accommodation and are free to dispose of it - write them a note telling them of your intention to dispose of the discarded goods 'from previous occupants'.... then just bin it

AndyFell

We managed to negotiate an advertised flat in North London from £395 p/w down to £350 p/w. Here's my advise for how to do the same:

- Aim to end your current tenancy at the beginning of December, your LL may offer to keep you on for lower rent to avoid the hassle of finding a new tenant around the festive period.

- There were hardly any people looking for 3 bed properties at that time. We were therefore able to take our time, and pit offers against each other, i.e. "here's a link to a similar flat that on at a cheaper price, can you match it?"

- When you negotiate your rental period, say you'll stay for 15 or 18 months. this means that you won't be moving around Christmas again (which was a pain) and also means that LL has guaranteed income for a longer period (although it may be at a reduced rate, but security is worth a lot in the current economy).

Not very LL friendly I know, but it's saved us a heck of a lot of money!

kennyjosiah

HI, I dont know if anyone can help we are looking to relocate to Llandudno vicinity (around 7 mile radius) but we can only find agents through rightmove who ask for £120 each for a reference for each of us (which I dont understand as we are married? ) and another £120 reference for a guarantor (£360 in total), or alternatively 6 months rent in advance and then again another 6months in advance if we wanted to renew in a further 6months (,which we would like to avoid as thats all our savings wiped out and no cushion for emergencies or removal vans, etc, also what would happen if the agent went bust) we are a family with 4 young children and have privately rented our current property for nearly six years and have never been late or missed a payment - is there a website or any tips on how to find the local independent agents who dont ask quite so much -thnks in advance :beer:

AnneWorkman

I'd just thought I'd point out you don't have to only negotiate on rent. I'm about to move into a place in the next couple of weeks, and we negotiated on having pets and a home business instead. We knew the property had been empty a few months, and the last prospective tenant had been offered a slightly reduced rent but then failed the credit checks. We agreed to pay the asked for rent, for a 12 month contract, but only if we could have cats and for my partner to work from the property (self employed runs an online business).

This worked fine for me, as the rent was already below what I had budgeted to afford, and I really wanted pets. Trying to find a property that allows cats is very difficult.

inamess200

Ok - 2 4 bed properties to rent both round the corner from each other - pre christmas both on at £795 in the last month one reduced to £695 and is let - i am going to see the other property 2night is it too checky to offer £695 for a long term contract ( I am thinking 2 years minimum)

AbbevilleBoy

loveandlight wrote: »

So your complaints against your landlord have nothing to do with them being genuine but more as an excuse to get the rent reduced!

Threads like this although are supposed to be tips to empower the tenant will serve no real purpose other than to encourage a lot of tenants to abuse the rules & regs and will serve no real purpose than to irritate a lot of decent landlords.




Lack of a boiler Gas Safety Certificate is hardly what I'd describe as a non-genuine complaint!

In my experience all landlords, no matter how reasonable they may at first appear, are only interested in one thing - taking as much of your money as possible for the minimum (legally or otherwise) possible in return.

carolt

Just to say a huge THANK YOU!!!! to Martin for putting this on the weekly newsletter. I'm sure it will help a lot of people.

Tenants are one group of people who aren't benefitting at all from the current interest rate reductions. If they have savings, for example building up a deposit, they're losing quite a lot in real terms. And the credit crunch hits everyone - not just homeowners, as current policy initiatives seem to think. Many landlords - especially those on trackers - will be saving hundreds of pounds monthly on mortgage interest payments thanks to this and can easily afford to pass some of that on to their hard-pressed tenants.

Great thread!!! Keep up the good work!

barnaby-bear

inamess200 wrote: »

Ok - 2 4 bed properties to rent both round the corner from each other - pre christmas both on at £795 in the last month one reduced to £695 and is let - i am going to see the other property 2night is it too checky to offer £695 for a long term contract ( I am thinking 2 years minimum)

If there's a mortgage on the property the lender will usually limit tenancies to a max. 12 months in the contract so demanding a 2 year contract can lead to disappointment. Expressing your intention to stay long term might sway the LL though.