Residents
Owners
If you own a rental property or multiple properties, don’t be surprised at some point for your tenant to ask for lower rent. This is a very common practice especially around the time of a renewal of a lease. It’s best to remain open and listen to your tenant.
Keeping a good relationship with your tenant will make your life easier. Unhappy tenants can cost you more than possibly keeping a happy tenant that pays on time and respects you and your property.
Be Prepared
- Know the Current Market - Just as the current housing market fluctuates, so does the rental market. If you are charging above what your area is going for your renter may very well be deserving of a discounted rent amount. If you lose that tenant it may be very difficult to replace him/her.
- How much will it cost you in the end? - You have rentals to make money, let’s not forget that bottom line it is a business. Consider the cost to bring in a new renter versus decreasing rent.
- Do you have good Negotiating Skills? - Remain open and flexible and always be honest. Listen to what your tenant is really asking for. Maybe you are unable to go as low as they want, but you can counter until you are both satisfied.
What to do if you are unable to lower rent at all?
Sometimes it is just not practical or appropriate to lower rent. However, what if you have a wonderful tenant that you do not want to lose? There are several simple things you can do when they renew their lease:
- Offer a home improvement gift certificate.
- Give a restaurant gift certificate.
- Lock in a rental price with no increases for the next 2 years.
These are just a few ideas. Let’s face it, a good tenant is hard to find and worth their weight in gold.
