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Haggle On The Rent


FrozenOut
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Do any of you haggle on the rent before moving in?

Thinking of leaving home to rent and wondered if it works the same as if you were buying, i.e knock them on the price.

I have never paid the rent they have asked for. If it is £650 I always offer £550 if its £800 i offered £700 and more recently it was on for £1500 and i got it for the £1300 I offered. Nowadays depending on where you live it really is a tenants market. What I do is watch the websites every two days. If you notice a property that has been on there for over 4 weeks then strike. Usually they will prefer to rent rather than risk waiting further months and lose the rent. So in other words you either take my £600 now and lose £100 a month or you decline and your property could take a further 2 months to rent and you lose £1200+£100 council tax...your call

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is kind of like when you buy a car - try and pick on the weaker elements and bring them to the fore in a bid to make the vendor nervous about prospect of losing a sale.

stuff like -

- fixtures and fittings not being as up to date as expected (got me 50GBP PM off my last rent)

- suss out the neighbours! arrive at the property 15 mins before your viewing appointment and look around - knock on doors and say hi if you feel comfortable enough. you will find out if they are noisy, or if they have kids likely to play around your place etc etc - very quickly. use any relevant info against the vendors!

- check out any furniture and equipment. rental vendors often try and skimp on ovens and fridges etc - be very picky here. to replace a washing machine might be more hassle than giving you an extra 20GBP off the rent.

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Do any of you haggle on the rent before moving in?

Thinking of leaving home to rent and wondered if it works the same as if you were buying, i.e knock them on the price.

You must haggle on price. If you're not embarrased by your offer, then you have offered too much.

Depending on the area you can get 10% off. Another tip is to be interested in 2 properties from the same agent - even if you hate 1 of them. That way the agent will be putting doubt into the vendor when mentioning the offer, providing he doesn't have a VI in property 2.

Edited by pondlife
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Why not use the carpet bombing method.

Find and view lots of properties offering what you think they are worth on each.

Someone always bites due to desperation/voids etc. If you cant get close to 20% off for 12 months your not trying enough.

Also you can often get reduction by increasing upfront rents too.

Another idea is to lie, I know it's immoral but the EAs do it all the time. Say you have secured (insert nearby property) for X per month can the vendor do the same as you'd prefer to rent through X agent , prefer the property etc.

Also dont forget to include fees in your calculations. Huge agency fees = lower offer. Make sure the agent knows this.

Finally remember that renting is currently a buyers marketplace with lots of properties empty.

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Why not use the carpet bombing method.

Find and view lots of properties offering what you think they are worth on each.

Someone always bites due to desperation/voids etc. If you cant get close to 20% off for 12 months your not trying enough.

Also you can often get reduction by increasing upfront rents too.

Another idea is to lie, I know it's immoral but the EAs do it all the time. Say you have secured (insert nearby property) for X per month can the vendor do the same as you'd prefer to rent through X agent , prefer the property etc.

Also dont forget to include fees in your calculations. Huge agency fees = lower offer. Make sure the agent knows this.

Finally remember that renting is currently a buyers marketplace with lots of properties empty.

Rather a sweeping generalisation about the state of the rental market! I'm a Jonny-cum-lately scumbag btl'er (Forum users description, please feel free to add more derisory names/expletives) and have just let a property and had 3 people "fighting" for it at the full asking price. I'm obviously not very good at this BTL thingy-me-jig stuff either because the potential rental income we used to calculate the purchase ended being 17% less than the rent we achieved.

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Rather a sweeping generalisation about the state of the rental market! I'm a Jonny-cum-lately scumbag btl'er (Forum users description, please feel free to add more derisory names/expletives) and have just let a property and had 3 people "fighting" for it at the full asking price. I'm obviously not very good at this BTL thingy-me-jig stuff either because the potential rental income we used to calculate the purchase ended being 17% less than the rent we achieved.

Damn 'white' of you not to raise the asking price given that you had all these people "fighting" over your property :P:P:P

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Do any of you haggle on the rent before moving in?

Thinking of leaving home to rent and wondered if it works the same as if you were buying, i.e knock them on the price.

I'm currently in the same position as you... and I have been looking at places to rent over the past couple of weeks.

I've put in a couple of lower offers on new build apartments, but so far I haven't had much luck with negotiating the rent down.

In both cases, the properties were sitting vacant (for at least a month), and were asking for close to £800 pcm.

My strategy was to offer low, but to point out the strengths of my position, in that I could move in straight away and that I would be willing to go for a longer tenancy, 12 - 18 months.

I made offers of £725, but these were rejected. In one case, the agent told me that the landlord's mortgage was £850 a month.

I think the problem is that in these cases the landlords have overpaid for the properties, and they are looking to recover close to their mortgage interest payments. Of course, if they continue to remain empty then they may loose £850 a month for several months, rather than just £100 a month by accepting my lower offer.

Looking at the cost of buying vs renting in my area, renting is definitely the better deal even if I were to pay full asking. If we take one of the properties I was looking at.

New build 2 bedroom, 2 bathroom apartment

Cost to buy approx £200,000

Monthly Mortgage Interest (on 100% LTV), fixed rate 3 years @ 5.35% = £890 (interest only) per month

Service Charge and Ground Rent = £100 per month

Total monthly charges = £990

Compared to the rental of £795 a month.

Essentially the landlord is taking a gamble on increasing capital values, and paying £200 a month for the priviledge.

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I'm moving soon into a rented property.

Secured a 5% discount under the asking rental.

In retrospect I think I should have asked for 10% - might have got about 7% off.

This is in a town where the local students union said:

I think the letting agents feel that they can charge pretty much whatever they want. I think we get taken for a ride.

Source: local free newspaper.

There is more room for manouever than you might think.

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Keep to landlords which HAVE NOT bought in the last 3- 4 years and you should be able to negotiate a discount.

I think that's a very good strategy so I will try it out over the next week or so, and report back with my results!

FrozenOut > It would be good if you could let us know on hear how your rent search goes as well.

Paul

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Got a discount from £750 to £700

Did this by scouting rightmove for weeks, and recognising properties that had not rented for some time.

I think the carpet-bombing tactic may be a mistake if you want decent accomodation. I turned down 90% of places without having to view based on poor location, lack of parking and stupid room sizes. This left me with too few properties to carpet bomb.

The haggling was too easy. Just said "The most I can afford is 700". The agent asked the landlord and he said yes. Why wouldn't he - the property was vacant for a month.

As an aside, it amazes me that letting agents have the audacity to describe a 7 foot by 8 foot room as a double. Yes technically you can get a 6'6" by 5" bed frame in there, but you ain't gonna get a lot else in! I think the correct description is "Cupboard"

Hope this helps.

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Anyone let me know what they think about this.

Rental £600 pcm (1 bed flat, very nice area)

My first move, offer 525 pcm

If landlord accepts this offer £475 with rent for contract paid upfront in one lump sum.

Comments please.

They should accept that. It really depends on the desirability of the property and how long it has been on for. If it has been on now for more than a few weeks the landlord will be starting to sweat. When a landlord sweats the rent drops accordingly. I would say most landlords add £100 on to what they hope to achieve.

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I paid £500/month all-in rent for 6 months. Then landlord said it had to go up to £550/month from now on- blaming rising interest rates, bills etc.

I responded by handing in a 1-month notice.

I had for a while thought I was paying £50-100 more than what I should have for that flatshare, before this rise, but was too busy with other things to look elsewhere seriously.

A week later, I noticed someone else advertising for tennant in the same block same kind of flat for £450 all-in... but this flat has broadband and sky also.

£100pcm drop in rent by just moving upstairs & I'd get sky and broadband there.

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  • 1 month later...

Just been told by an Agent not to offer 'rents up front' through fear of not knowing the landlords financial status, i.e I pay for 12 months up from, and he goes bankrupt on month 3 of the contract and I'm out on my ear by month 5 and lose 7 months money.

Any thoughts anyone?

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Just been told by an Agent not to offer 'rents up front' through fear of not knowing the landlords financial status, i.e I pay for 12 months up from, and he goes bankrupt on month 3 of the contract and I'm out on my ear by month 5 and lose 7 months money.

Any thoughts anyone?

Offering 12 months upfront is asking for trouble. Maybe 3 months should be enough to obtain all the reduction.

Also you could stick you rent in an decent savings account to make more.

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  • 2 weeks later...

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