There are many ways to negotiate the price with tenants, and you should know the vital ones to reach an agreeable conclusion to the discussion. Read on to learn more!
Being a landlord isn't an easy task. Aside from managing your property, you also have to manage the expectations of your tenants.
More often than not, the interaction between a tenant and a landlord is reasonably calm and peaceful. As long as there is a constant understanding between the two, things would always go smoothly. However, this isn't always the case—especially if a tenant wants to renegotiate their contract.
You may encounter a tenant who wishes to discuss lowering their monthly rent. While it's normal to feel apprehensive about the situation, you may opt to settle things harmoniously instead. There are many ways to negotiate the price with tenants, and you should know the vital ones to reach an agreeable conclusion to the discussion.
Analyze the situation. Ask yourself why you think your tenant is opting for a decrease in the monthly rent.
If they happen to be struggling financially due to the current economic crisis, then perhaps you may consider decreasing the price a bit! You don't need to follow their expected price, but rather, somewhere in between would hit the spot. However, remember not to lower it too much, or you won't be making any profit by the end of each month!
If they approach you with respect, make sure to do the same thing. It's never easy to renegotiate a price that was already agreed upon, so give your tenant the benefit of the doubt, especially if they've been good tenants throughout the years.
If your tenants aren't struggling financially, there's a big possibility that they want to save up for future needs. There's nothing wrong with saving a couple of hundreds a month; however, the price which was first agreed upon should not be compromised.
Consider asking your fellow landlords what their current pricing is. If you realize that you've been asking too high from your tenants, then you may lower the rent. However, if their asking price is almost as similar as yours, you may opt to refuse the decrease instead.
This doesn't necessarily mean you're "closing the door" too early. Just analyze your situation and ask yourself if you have what it takes to find a much better tenant who can pay your asking price. If the answer is no, then, by all means, continue to negotiate with your tenant!
However, if the answer is yes, then you may need to explain the situation calmly. Just make sure that you already have a potential replacement in mind and that they are 100 percent sure about their decision. You wouldn't want to send off your current tenant only to have your replacement back out at the very last minute.
It is your obligation as a landlord to be fair at all times towards your tenants. If they ask for a decrease in the monthly rent, hear them out and enumerate why their request may either be approved or denied.
There are many ways to renegotiate the price. If you still can't come to an agreement, it may be time to ask for help. Many rental property management companies are willing to go the extra mile to continue the negotiation on your behalf. Avail of their services and take the load off your shoulders.
Are you looking for an efficient residential property management firm in Ottawa? Look no further than Fahel & Co. Property Management! We specialize in bridging landlords with their tenants and handling their concerns, such as rent renegotiation and other tenant inquiries. Contact us for more information about our entire lineup of services.