Landlord-Tenant Negotiations Made Simple!

Landlord-Tenant Negotiations Made Simple!

Before a Lease is Signed

Negotiations are part of human behavior and can be really stressful!

Before a Lease is Signed

This is the ONLY time a landlord should CONSIDER tenant negotiations. A landlord should always have the lease ready to go. A landlord can read the lease WITH the tenants. As you read the lease or even during showings people will ask questions.

Some examples of possible tenant negotiations (with landlord answers to give perspective):

*Will you take a 6 month lease?– I charge a $300 premium unless the 6 month lease works best for me.  I usually require 12+ month lease unless I want to move the lease cycle into a better time of year.

*I only make 2 times the income requirement. Is that okay? -Honestly I think 3x rent is low so I  DO NOT lower this point.

*Will you lower the rent $200? – Unless I over priced the house (which is rare) or I have had no bites, I  do not negotiate with rent. If I am going to lower the rent then I change the ad and advertise to EVERYONE this lower rent.

*I am not moving out here for 3 more weeks. Will you hold the house? – After being burned we no longer hold the house at all. The house is available when the house is available. If they wish to have the house they will take possession and start paying for the house as of the availability date. I have not had any trouble with finding people to follow this policy. If they are interested they will take the house.

These are just a few of the MANY questions a landlord might be asked.

This is the time that these and MANY other questions are safely addressed! After this SMALL window (once lease and deposit are accepted) then the landlord should no longer negotiate. This is your time as the landlord to come back with a “counter” offer.

Do not stop showing the house or accepting other completed applications during this process. You may have other tenants “take” the house while another is being wishy-washy. Do not hold or put another person on hold during the process. The first person to be approved and completes all the documents gets the house. This also keeps it fair because the process doesn’t change.

If someone is TRULY interested they can get the paperwork done in hours. A landlord will never have this policy burn them. If anything it will make your life SO much easier and less stressful.

After a Lease is Signed

Once the lease is signed a landlord should NOT re-negotiate. Whatever was agreed upon is enforced by both sides. Neither the landlord, nor the tenant are allowed to make the pot any sweeter. That is why it is important to have a strong lease that details everything from the Break Lease Clause to Who Pays Pest Control. This does not mean that a landlord won’t still receive requests.

Simply say “No”! This is also why you should also require a deposit with lease signing and rent with keys. When people are upset it is human nature to start to try to find “leverage”. As a landlord it is VERY stressful and annoying when you feel people are holding you “hostage”. Therefore, do yourself a favor and say NO, but ALSO make sure you have  your ducks in a row.

Remember:

No one cares about your home, rentals, personal financial situation, etc. more than YOU DO! While we all try to do the right thing; remember to take care of yourself as your primary objective. While every one has a “sob” story you are in your place to say no! You have a right to protect your own family interests. Even if that family is small or even if that family is (gasp!) making money on a rental. To date the only time negotiations have ever hurt a landlord was when they said yes when they should have said no.

How do you handle negotiations with either your landlord or tenants? What are your best practices?

Related Posts

A wise person once said that I never shared the bad about being a landlord. While I felt I had […]

As a small business owner you are going to wear multiple hats. I am the ultimate believer in sweat equity and doing DIYs. My […]

This is the second post in a two part series about how to prepare your house for a Hurricane. The […]

Scroll to Top