Had an interesting experience during the week. We have new tenants moving into a property that we have just renovated. I had just read a book on negotiation which said “..the first person to mention a price always loses…” so I thought I would give it a test. When the tenant asked what was the rent I said “I haven’t decided yet. Why dont you go away and think about what you would be happy to pay for the place if I gave you a 2 year lease”. His offer (2 days later) was $230 per week which was $30 more than I was going to ask!!!! Anybody else ever tried this?
I did a course with work called “The seven Elements of Negoitation”
I cant recall if it said “the first person to mention a price always loses”. One of the elements is to look at standards – in your case market rents.
So obviously they had a higher value placed on the property than you or you did not do enough research to find the market rent for the area.
Good on you Malachii!!
Interesting concept. It proves that thinking outside the square works!
I think it is hard to determine that fine line (even with all the research…) between rent being too expensive/ too cheap.
That is great for you.[
]I agree with the concept of first person to mention the number losing. I’ve seen it a few times recently.
Well done on your negotiations – plus you got yourself a 2 year tenant!!
Cheers
MelDo people think that in this environment of rising interest rates and a more cometitive rental market, that 1 year leases are more and more common? I remember when 6-month leases were de rigeur, but I am certainly seeking one year leases these days- at least then, I can budget/plan for 12 months.
Are other people pushing for 1-year leases too? Do you prefer 1 or 2 year leases? Would 2 year leases bother you because you cannot do a rental review after 1 year?
kay henry
Its normal practice in the areas I invest for 12 month leases.
Six months is too soon, before you know it, its expired.
Two years is a long time for a tenant to commit so its rare you get someone who is prepared to sign for that period. I once had someone prepared to sign for 2-3 yrs but decided not too. I just thought it was too long a period.
As i pay a weeks rent for a lease signing, I think you want value for money – so 12 months is what I expect.
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