What do you do when a future renter asks for a discount?

12 Replies

This is a corporate rental.  The guy that contacted me lives here.  His company has rented off and on from me about 20x in the last few years.  But this guy was asking for a discount for 2 guys sharing a place.  I told him to call the Holiday Inn and ask them for a discount.  Holiday Inn would be $700/week, I'm $400.  

So after the conversation I wanted to tell him this.  I'll bring 2 pairs of boxing gloves and headgear.  We box until one of us touches a bodypart other than a foot on the ground.  If he can do it, I'll give him 50% off the first week rent.  If I knock him down, he has to pay an extra 50%.  I've got 2" and 75 pounds on the guy, plus I box and lift.

If boxing is too violent, I would offer to wrestle him.  First one to pin the other wins.  Same deal with the rent.  I used to wrestle.

If wrestling is too much of a contact sport, I'd take him to a gym and see who can bench press 225 pounds the most.  Pretty sure I'd win at that too.

So what do you do when they ask for a discount?

depends on time of year duration of stay etc, but I have done a 10% discount occasionally, but not during peak vacation season.

Back in the day we had a corporate renter for 8 years for their exec families. They NEVER asked for a discount & during the 8 years they maintained the property at their cost. They rebuilt our old kitchen, complete with new flooring & appliances, had their carpenters completely rebuild all the screens & doors for the large screened in porch. Put in a new HW tank as the old one was only 30 gallons & they said they ran out of hot water. After a winter storm I went by & they had 4 guys on the roof taking off the snow.

Since then the visiting Coast Guard Chiefs have been renting it (12+ years) & they also take great care of the place. The last one completely painted the interior on their dime, added two electric garage door openers to the 3.5 car coach house & fenced in the back yard for their dog complete with permits.

What are my options? If I have lots of options and tenants interested, I pass. If this is the perfect tenant and they can move in right away, I'll sometimes offer 20 bucks a month off on a long term (1 yr) lease. Often I'm already listing at the top or slightly over the top of market rate, so losing $20 a month for a perfect tenant is often times worth it for me. 

@Paul Sandhu , add a foot race to your list. ;)

I just tell them the price of firm. When I first started with STRs I would grant it sometimes. Honestly, they were always the worst guests and the only ones to ever mark me down to a 4 for value. Never again.

Originally posted by @Jon Kelly :

@Paul Sandhu as long as you have enough demand, simply say no to the request. Maybe respond with data that lets them know your price is at or near market price

 I did.  Told him to call a hotel and ask for the rates, then ask for a discount.  Then told him to ask if they have a kitchen and a W/D in the unit.

This company has a tendancy to take a long time (30 days) to pay rent.  The handler payed the rent today for the 2 new tenants.  They like the place.  I put a 6 pack of Kansas beer in there before they moved in, and let them know about it.  

A few hours later the handler called again and wanted to know if I had another place.  Sure did, 30 yards away from the first place.  Now all the apartments are rented.  

I'm considering having a cook out tomorrow.  Grilled hamburgers, chips and a keg.  I'll buy it all.  One of the tenants wives has volunteered for food prep and cooking.  There are 10 grills there.

Yes or No?

When people ask me for a discount I tell them if I don't rent it in three or four weeks I'll consider it-- but since my apartment is nicer than anything else on the market in that price range, I don't think I'm going to have any trouble getting my price.