Negotiating rent?

Question

my husband and I built a new home that was completed january 2012. Just a few weeks ago he accepted a job promotion out of state. Because we built the home there is little to no equity so we've decided to rent it for a few years. I listed it on craigslist. I didn't post any pictures and said it wouldn't be available until Jan 2012 just to see if there was any interest out there or if I'd need to hire a leasing agent. I got a response 2 days later from a man who asked a lot of questions. Finally he asked if price was  negotiable. He's never seen the inside of the  house. My husband and I own other rental  properties but these were purchased with the  intent of them being rentals in a high rent area so  they rented out very easily. Since this was our  primary home and at a much higher price point I  wasn't sure what to expect. I have the house listed at $500 higher than our mortgage payment and monthly taxes so I could come down. The house is priced at fair market rental value. If this were you would you come down or wait it out?

Joel Owens · Answer

Rent isn't the issue.The quality of the tenant is.Being a high end home and you a property manager you should already know there is a difference between rental finishes and custom.

I would want a well qualified tenant with a bunch of security down that is a professional versus getting a hope of a higher rent on the front end.

If a bad tenant trashes the place that will cause major damage to your place in cost down the road.At the least you will have to replace carpet and paint down the road.Craigslist many contacts on there is a scam or they are trying to get you down on rent to do a sandwich lease and get the spread on the tenant going in.

I would have an aggressive rent rate to attract many renters and screen for the best one versus charging a high top market rent and getting only a few calls.Then you might have to waiver on your exact qualifications for a tenant and that's when the trouble starts.

Michael Seeker · Answer

It sounds quite strange that somebody would try to negotiate rent before even seeing the house.  If they are very familiar with the area, then maybe they already know/feel like it is in a good enough neighborhood that they don't need to see it.

If I were you I would post pictures of the property and repost the listing to see what kind of interest you get.  With around a month to go before you need to rent it, it sounds like you haven't put forth the full effort to find a tenant.

If the guy seems legit, I would simply tell him that you would be fine writing up a lease at your listed rent right now, otherwise you will continue to market it for the next month or month and a half and you MIGHT come down a little bit on the rent if you can't find somebody willing to pay the full amount.

I would be careful as there usually isn't as much demand for higher end rentals in a new construction area.

Bill Wallace · Answer

I would never rent to someone to someone who wanted it sight unseen.  Too many scams around.

My normal process is to stick to my guns on the rent and tell someone asking for a lower amount to watch Craiglist.  If I'm willing to take a lower amount I may offer it at a lower price next time I post it.  I actually think this is an important fair housing practice so it doesn't look like I'm discriminating by allowing preferential rent treatment to one buyer over another.

Mindi B. · Answer

If you are asking FMV, then stick to your guns. I would not even consider lowering the rent until the place sat vacant for at least a month. There are tons of renters out there, don't kiss the feet of the first person that comes along showing interest. You may need to do a bit more advertising to get more interest and applicants.

Like others have said, a good quality tenant is much more favored than renting a place quickly. If he turns out to be a bad tenant you will be paying for it in more ways than one, and kicking yourself for not holding out a little while longer.

Bienes Raices · Answer

I agree. Like the ones who try to negotiate the security deposit, I take it as a signal that they can't really afford the place.

If they try to negotiate once they have seen the place, that's a different matter.

Michelle Marty · Answer

Sorry built in Jan 2011

Negotiating rent?

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