Negotiating Price with a Tenant – What You Need to Know before You Rent Your Property

negotiate price with a tenant

Renting your house can be a strenuous task if you are going at it the traditional route, i.e., using a local street agent. However, if you use an online estate agent, there are many things that you can relieve yourself of. For instance, the online agent will take care of taking the right details from you to upload on the most famous property portals in Britain, such as Rightmove, Zoopla, and PrimeLocation, and will have a credit check on the tenants who request for viewing, so that you can easily figure out which tenant is responsible enough, and one with whom you will be satisfied with.

However, there is the part of negotiation that scares every landlord — at least a little. No wonder you have set the price that you think is right, but the tenant would want to settle on a price that is as cheap as possible. Negotiating without making a mess of it seems like a tricky task, and one that can only be done by someone with huge diplomatic capabilities. But it can be done by many people if you just know the right way to do it. So here we are, sharing some titbits from our experts to help you through the negotiation process successfully, and without you having to be frustrated in the end.

1. researchResearch, research, research

One thing that we can say for sure is that the market trends are subject to change. Sometimes the market favours the homeowners, while other times it favours the prospective tenants. You need to make sure that the price you have set matches the current trend in the market. If your price is too high as per the state of the market, you will repel any and all prospective customers, and if your price is too low, you will lose a lot of money in profits, and will regret the decision later. You can use the Zoopla Estimate to get a close approximate on the pricing of your house, and if you are still unsure, discuss it with your online estate agent. If you are unsure where to start, your neighbourhood is a great starting point. View the houses that offer the same size/ number of rooms that you are offering, and match the prices. Note that if either of you have more amenities than the other, say, a washer and dryer, or an amazing closet organiser, then the price of that house will be more. Make sure that the person offering the amenities is you.

2. Offer Incentives that Tenants Needoffer incentives that tenants need

Amenities set you apart from your competition when you are renting your home. Tenants would be more inclined to choose a little pricier home if it offers them some amenities that they would really appreciate and which would make their life easier. This means that price is not the only factor that you need to keep in mind when you are renting your property in the UK. The most popular incentives that would entice a profitable tenant are as follows:

  • Closet Organiser: Everyone needs a place to store their stuff away, and if you provide them one, they will be more than relieved. You can easily buy one or get it crafted for your space. This may not cost you as much, but is sure a great way to attract tenants.
  • A Paint-over: You can offer your prospective tenant to have a paint work done in any room or rooms of the house in the colour of their choice.
  • Washer/ dryer in the House: A lot of people would jump at the opportunity to stay at a place which offers them a washer and dryer even if the rent is a little higher than the current rates in the market. Everyone likes the convenience of not having to drag their laundry all the way to the Laundromat, and having it done at home is a great burden off the shoulders.
  • Parking: If you can offer your tenant a viable space to park their vehicle, it would be a huge incentive for them to select your place over many others. They may even be looking at only the places that offer a parking, and if you provide them this amenity, you would have a better chance to get these profitable tenants.
  • Free Wi-Fi: If all else fails, the prospect of having free Wi-Fi would definitely entice any client. You can offer these services for a few months, or, if you can afford it, offer it for the entirety of their stay at your place.
  • Carpet cleaning: You can offer your prospective tenant the amenity of having their carpets cleaned professionally. You can offer them this service every six months, and it would definitely attract their attention.

3. Take the Season into Account

A research shows that the real estate prices rise in the hot seasons and fall in the cold seasons. Negotiating according to the season is a solid, yet underrated trick of the real estate market. So, if you are renting your house in the summer time, then do not lower your price too much in the negotiation, because there will be many tenants who will be willing to accept the price at the rate you offer. In the winter seasons, though, you might have to agree if the tenant is asking for a lower price, since you would have a harder time finding a tenant who will agree to your price when other homeowners are willing to lower theirs. If you can, rent your property during the summer seasons to get a good price on your rent. A good method is to always refer and discuss with your online estate agent the best way to negotiate, and the lowest price that you should settle on.

If you are renting your house in the UK for the first time, you can look at this handy guide to help you though. If you need to hire a reliable online estate agent, then contact iMoveEstates today!

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