Rent negociations

May 5, 2006 4:50 AM

How to negotiate a good deal on rent with an owner inexperienced with the rental market?

I heard through the grapevine that a neighbor (who owns her condo) is moving and would like to rent it rather than put it on the market. My "source" tells me she doesn't know how to determine the rent, and was curious what mine is. I'm considering approaching her since I'd love to move in there (it's in better condition and has more light), and I'd like to use her inexperience with the rental market to my advantage in negotiations. It's slightly larger than my unit (one more bathroom plus a study) so I'm hoping she won't just tack on 30% or somethign to what I'm paying. How can I negotiate myself a good deal? Compare assessed value of her and my units? Estimate her mortgage payment? What should I keep in mind when I approach her?

posted by saffron to Home & Garden (4 answers total)

It's hard, albeit impossible, to estimate her mortgage payments unless you know what type of rate she has negotiated with her bank (is it fixed, variable, i/o, etc) and without knowing how much she put as a down payment. Your best guess is just that-- a guess.

If your place is smaller and you're in the same bldg, perhaps you can offer her what you pay now (or even start a little less) and if she takes it, suddenly you're getting more for your money.

She could ask for copies of your rental agreement, or even voided checks to prove how much you've been paying, so be careful how you approach this situation. You don't want to low-ball her to a point where it's insulting.

And remember, get everything in writing!! Especially if you negotiate a rent lower than market value, get it in writing and include a period of occupancy so she cannot kick you out immediately. Cover your butt. This goes for upkeep too -- what if an appliance fails? or a window gets smashed -- you want her to promptly fix this stuff.
posted by seinfeld at 5:18 AM on May 5, 2006

Offer to pay her what you're paying at your current flat. You win by getting a bigger place. She wins by getting a tenant without having to do any work, pay any advertizing or brokerage fees, or losing a month's rent while the place is empty. Best of all, you don't have to mislead her in any way.
posted by alms at 6:51 AM on May 5, 2006

And have her come over to your place to see how perfectly maintained you keep it. She is much more likely to choose you when she feels that it's easier and safer than renting to a stranger.
posted by five fresh fish at 10:05 AM on May 5, 2006

Landlords dream of having clean, considerate, quiet, dependable tenants. If you're clean, considerate, quiet, and dependable, and can demonstrate this, you have the inside track.

Negotiate in good faith, offer something that's on the low side of reasonable, have that pen ready to write a cheque and sign the lease.
posted by Artful Codger at 2:45 PM on May 5, 2006