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Professional Landlord Prefers Void Over Lower Rent

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I went to view two cottages on the southwest coast path last week. One of them was nearly rather nice, but had a couple of drawbacks that bothered me. One that I'd have lived with if I'd been searching under pressure of time.

Last thing there: I asked to take a second look at the shed. Agent and I agreed it was no use for keeping anything valuable in (as in, decent-quality bikes), so that's the space for a table in the kitchen gone, and the cottage feeling like slumming it a bit (see what I mean by drawbacks)?

Agent concluded I wasn't about to take the place, so he had nothing to gain by sales talk. I tried a gentle probe: said to the agent that if I were to decide I'm interested, I'd expect to put in an offer somewhere below the asking price.

Here's where it got interesting. Agent said this landlord wouldn't accept an offer. Explained that the previous tenant had tried to negotiate a reduction (from the same rent), landlord refused, tenant moved out, landlord got a void. Agent was clear that this landlord would rather take a void than a lower rent.

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I went to view two cottages on the southwest coast path last week. One of them was nearly rather nice, but had a couple of drawbacks that bothered me. One that I'd have lived with if I'd been searching under pressure of time.

Last thing there: I asked to take a second look at the shed. Agent and I agreed it was no use for keeping anything valuable in (as in, decent-quality bikes), so that's the space for a table in the kitchen gone, and the cottage feeling like slumming it a bit (see what I mean by drawbacks)?

Agent concluded I wasn't about to take the place, so he had nothing to gain by sales talk. I tried a gentle probe: said to the agent that if I were to decide I'm interested, I'd expect to put in an offer somewhere below the asking price.

Here's where it got interesting. Agent said this landlord wouldn't accept an offer. Explained that the previous tenant had tried to negotiate a reduction (from the same rent), landlord refused, tenant moved out, landlord got a void. Agent was clear that this landlord would rather take a void than a lower rent.

That's because he's stupid.

Just like the people who are 'waiting until prices to go up' before they move and who don't realise that when prices go up, it costs them more to move up the ladder.

There's plenty of rental choice - why indulge a berk?

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theres a 3 bed round the corner to where I was.

I was looking since March and this place was on then

we looked way to small and the asking rent was more than we were paying £850.

glanced through RM last week and the same place is still available for £900.

could be one of those banks repos theyve bought themselves....maybe they can claim the rent IS £900 for investors information.

course the rent is actually 0. less agents fees. council tax. delaps.

still empty today. 850*5 is a lot of no rents. worse 900*5 of no rents.

Edited by Bloo Loo

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Maybe he owns it. Maybe he thinks it's a fair price. I would do likewise. If someone's so keen to save a few measly quid I don't think I'd want them renting my house - regardless of money.

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There are many reasons why a landlord may want to leave a property void rather than rent it out at a lower value...some better than others.

Just because someone doesn't allow you to negotiate them down doesn't make them stupid.

no, it means they are losing income.

sure, they might not desire a certain set of tenants due to whatever reason.

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no, it means they are losing income.

sure, they might not desire a certain set of tenants due to whatever reason.

They are losing an immediate income

If they aren't leveraged, they wont feel any cash flow pressure

Many houses in the UK are owned outright, without debt... even now

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Maybe he owns it. Maybe he thinks it's a fair price. I would do likewise. If someone's so keen to save a few measly quid I don't think I'd want them renting my house - regardless of money.

I'd agree in some ways, there comes a point where it's not worth the hassle be it renting a property, doing a job whatever.

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no, it means they are losing income.

sure, they might not desire a certain set of tenants due to whatever reason.

I see too many people on this blog assuming that the other party is stupid just because they turn down the "deal of the century" that is offered to them by the blogger.

The art of negotiation is to try and see things from another persons perspective. Then you might begin to realise why they behave the way they do and what you might need to offer them in order for you both to achieve your objective.

The agent here is providing some useful information, ie this might not be a straightforward negotiating position. Sometimes if you pursue these things further you really can get a good deal.

I'll repeat. There are many reasons why you might prefer not to accept a low rent offer. Try to imagine what they are. Then think about how you might be able to use this information as a negotiating tactic.

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They are losing an immediate income

If they aren't leveraged, they wont feel any cash flow pressure

Many houses in the UK are owned outright, without debt... even now

its still a loss. council tax becons after 6 months.

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I see too many people on this blog assuming that the other party is stupid just because they turn down the "deal of the century" that is offered to them by the blogger.

The art of negotiation is to try and see things from another persons perspective. Then you might begin to realise why they behave the way they do and what you might need to offer them in order for you both to achieve your objective.

The agent here is providing some useful information, ie this might not be a straightforward negotiating position. Sometimes if you pursue these things further you really can get a good deal.

I'll repeat. There are many reasons why you might prefer not to accept a low rent offer. Try to imagine what they are. Then think about how you might be able to use this information as a negotiating tactic.

I did exactly that.

saw the property was void for 6 months....LL had dropped to above my range, but the AGENT said he might bite at my top. He did.

hes delighted., Im delighted.. Agent is delighted.

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I did exactly that.

saw the property was void for 6 months....LL had dropped to above my range, but the AGENT said he might bite at my top. He did.

hes delighted., Im delighted.. Agent is delighted.

Well done.

But we're not talking about your situation are we ?

We're talking about this one. Why might a landlord prefer to leave a property empty rather than accept a lower price ?

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Well done.

But we're not talking about your situation are we ?

We're talking about this one. Why might a landlord prefer to leave a property empty rather than accept a lower price ?

'Cos he's an overstretched BTL and he's planning to burn it down for the insurance?

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We were in a similar situation, trying negotiate rent down from £1300 to £1100 a month. We tried to reason with the landlady that rents were falling and we were a working professional couple looking for a long let. She said no.

Two months later and she calls me to ask if we're still interested in said property at full price. Apparently she could rent for the full amount but only to students, which she didn't want to do. We again offered £1100 a month after her two month void and she again refused.

Simple maths - £1100 x 12 months =£13,200, £1300 x 10 months = £13,000.

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I went to view two cottages on the southwest coast path last week. One of them was nearly rather nice, but had a couple of drawbacks that bothered me. One that I'd have lived with if I'd been searching under pressure of time.

Last thing there: I asked to take a second look at the shed. Agent and I agreed it was no use for keeping anything valuable in (as in, decent-quality bikes), so that's the space for a table in the kitchen gone, and the cottage feeling like slumming it a bit (see what I mean by drawbacks)?

Agent concluded I wasn't about to take the place, so he had nothing to gain by sales talk. I tried a gentle probe: said to the agent that if I were to decide I'm interested, I'd expect to put in an offer somewhere below the asking price.

Here's where it got interesting. Agent said this landlord wouldn't accept an offer. Explained that the previous tenant had tried to negotiate a reduction (from the same rent), landlord refused, tenant moved out, landlord got a void. Agent was clear that this landlord would rather take a void than a lower rent.

I suspect that he thinks that someone else will offer the full price soon "as its worth it" - so he is not open to offers.

Several like that near us, I offered on one in November, just as the last people moving out - no deal - its taken now (and I heard from a neighbour that the rent they are getting is the same as I offered) so they ended up with 6 months void and then they didn't even get the higher rent.

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I hear this every week from people looking to buy cars."We went to this garage but he wouldn't give us anything off". As a business strategy it's insane.This is 2009 not 1959 and people would be mugs to pay the asking price for anything.

When I put a car up for sale I add £1000 to what it cost me.This is on the low side and some dealers mark up double.If a customer comes in and does not want to trade in we give them half our profit by way of discount. £500 may sound a good mark up but then you have £65 VAT to pay,a new MOT and any warranty work,so you tend to end up with about £350 profit.

This landlord sounds like a dope all that will happen is that the tenant will rent from someone more switched on.

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I see too many people on this blog assuming that the other party is stupid just because they turn down the "deal of the century" that is offered to them by the blogger.

The art of negotiation is to try and see things from another persons perspective. Then you might begin to realise why they behave the way they do and what you might need to offer them in order for you both to achieve your objective.

The agent here is providing some useful information, ie this might not be a straightforward negotiating position. Sometimes if you pursue these things further you really can get a good deal.

I'll repeat. There are many reasons why you might prefer not to accept a low rent offer. Try to imagine what they are. Then think about how you might be able to use this information as a negotiating tactic.

Only reasons I can think of:

a) missing opportunity for person next week to offer full rent

B) if offer was really low might not be worth the hassle

c) if you are thinking of selling if can't get rent better to have it empty than sign into year long contract at lower rent.

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I went to view two cottages on the southwest coast path last week. One of them was nearly rather nice, but had a couple of drawbacks that bothered me. One that I'd have lived with if I'd been searching under pressure of time.

Last thing there: I asked to take a second look at the shed. Agent and I agreed it was no use for keeping anything valuable in (as in, decent-quality bikes), so that's the space for a table in the kitchen gone, and the cottage feeling like slumming it a bit (see what I mean by drawbacks)?

Agent concluded I wasn't about to take the place, so he had nothing to gain by sales talk. I tried a gentle probe: said to the agent that if I were to decide I'm interested, I'd expect to put in an offer somewhere below the asking price.

Here's where it got interesting. Agent said this landlord wouldn't accept an offer. Explained that the previous tenant had tried to negotiate a reduction (from the same rent), landlord refused, tenant moved out, landlord got a void. Agent was clear that this landlord would rather take a void than a lower rent.

Tough. It's his prerogative.

If he doesn't want a tenant in his flat incurring wear and tear and is willing to absorb the cost, then there's nout you can do about it.

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Well done.

But we're not talking about your situation are we ?

We're talking about this one. Why might a landlord prefer to leave a property empty rather than accept a lower price ?

who knows. maybe you could guess. it would be as valid as any other opinion.

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Renting out a house, even if you own it outright, still incurs some costs. There may be some repair that will be necessary prior to letting it out, so it there might be a substantial cost up front before the landlord can get his income stream. Boilers for instance can be very expensive - ask any MP! He might therefore have a floor to how much rent he will accept.

If this is the case a savvy HPC go getter could well get his lower rent by offering to pay say three months in advance easing the poor land lords cash flow problem while reducing their own living expenses.

I think Steve Austin's point was a very good one there. Always worth bearing in mind that you can turn most situations to your advantage if you are prepared to think things through and use a bit of imagination.

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Renting out a house, even if you own it outright, still incurs some costs. There may be some repair that will be necessary prior to letting it out, so it there might be a substantial cost up front before the landlord can get his income stream. Boilers for instance can be very expensive - ask any MP! He might therefore have a floor to how much rent he will accept.

If this is the case a savvy HPC go getter could well get his lower rent by offering to pay say three months in advance easing the poor land lords cash flow problem while reducing their own living expenses.

I think Steve Austin's point was a very good one there. Always worth bearing in mind that you can turn most situations to your advantage if you are prepared to think things through and use a bit of imagination.

I have done just this - and it worked well. Property up for rent at 660EUR, landlord in the middle of redecorating and doing the garden.

Offered 500EUR and said that I would do the painting and maintain the garden, and pay the years rent up front.

Made a deal at 560. With the cash up front he was able to bring forward repairs on another property.

It's not like I was making much interest on it, and if I lose my job (now likely) I have less 'savings'.

Equiv rent in a city in UK would be 900 per month

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