My report is for you to use your power to negotiate, not only a reduced weekly cost of accommodation, but also to get
best accommodation available in area in which you wish to live.Hello Colm Dillon here ...
Market conditions will effect final outcome.
Irrespective, a good negotiation, following these guidelines, will save you money. Get to know state of market before you commence.
Determine how much you can afford to pay and then go higher. For example if you can afford $200 per week, start looking at a figure of say $250 - $260 per week. If you fall into a higher bracket; say $400 per week, start looking at $500.
Go to several real estate agencies and ask them what they have on their books at amount you nominate. Also tell them your preferred areas.
Go through normal selection process and pick best place in which you would be happy living.
Confirm weekly/monthly rental with agent and length of lease term i.e. 6 months etc
Confirm with agent that you really like place, although there are a few others you like as well. Don’t say which ones, just give impression that their agency is not only 'cab on rank.'
Note: Final selection by you will be made on basis of landlord attitude, as you intend living in property for a ‘while.’
Start The Negotiation. Ask agent to find out how much landlord would accept for a 12 month lease. He will probably reply by stating same amount back to you as you would pay for a six month term.
Start ramping up your approach by enquiring about a 2 year term. At this stage you should be getting agent to phone owner and coming back to you with a discount.
You could leave agency for a hour or so ... allows time for agent to see that you are giving serious consideration to other properties, as well as theirs.
Don't be to automatic in your process. "Time" is a wonderful tool in negotiation.
Generally talk a bit more to agent and raise question of what discount owner would accept for a 3 year lease term.
Again a phone call to owner should take place. If agent is making all decisions without calling owner, you should insist, as h/er does not have a big latitude in rental decision making. The owner is agent's ‘boss.’
You should expect a further discount from this latest approach.
The agent may start to feel as though negotiating should be coming to an end. Don’t worry, you are about to bring out ‘Big Guns.’
Confirm again that you are warming more and more to property, but there are a few other things you want to raise.
Tell Agent that you would consider pre-paying 12 month rent in advance, if owner would come to party on rent. Emphasize, lack of risk to owner; a large one off payment in his hand now that could be used to buy more property, etc etc.
Expect a reduction and Get It.
Depending on how your are going in reduced rental stakes, in approaching your target base rent price, you may have one further go and offer 18 months or two years rent payment in advance.
You may hold off with this final offer by leaving office after last response.
The agent and owner have given ground on rent so they may be feeling a bit tender. Let them 'marinate' for a few hours; maybe even over night, then put last proposal of 18 to 24 month prepayment of rent.
