Landlords: What are your experiences of rental applicants asking for lower than your listed rental price?

[Anonymous]

Anonymous wrote:What is her credit like? What kind of job does she have? What does her social media look like? These will give you a better sense of the tenant.

+1 . THIS.
Also, apartments are hard to rent in November. I assume you're asking on DCUM because you're limited in the number of interested tenants. If everything else is a green light, I would go ahead and reduce the rent for a longer term contract.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How long has it been on the market? I would be inclined to tell them you'll get back to them and look for a full price renter.

One month (there was another offer but the credit score was too low), which is surprising b/c it took me less time to find a good tenant last year. And I've already cut the price. So with this applicant's offer it'd be $200/mo lower than what last tenant paid. I guess it's not a big deal in the grand scheme of things. But I'm wondering if it's because of the market (with government shutdown and everything)...

I think the potential tenant is probably choosing between your place and another rental that is less expensive. It’s not a red flag for the tenant’s personality, you’re just overpriced for the current market conditions.

It's possible but not always true. Sometimes it's just the person who always wants a bargain and would not ever want to pay the price listed, some people just want to haggle or buy things only on sale even if in reality they aren't getting a deal, it's psychological. Sometimes it is indecisiveness and person wanting a sure sign that your rental is the place for them to have them pull the trigger. People ask for discounts even on things that are below market value.

Also, in general people who ask a lot of questions or for certain concessions will continue being needier than those who just make their decision after shopping around and pull the trigger. Often times people who ask a lot of questions, drag their decision end up not giving you the business.

So, yes, I'd say in general it can be a red flag that you may be dealing with a potentially problematic customer. It's true for any business, not just RE.

+1 It could be either the tenant is a problem person (asking lots of questions and over more than one email/text is a sign), your rent is a little high for the market, or your rent is a little low for the market.

When we had an AirBNB, we ran discounts in the beginning. That enticed problem people to ask for even more off. A similar place usually rented for much more, so offering a lower price unfortunately attracted people who didn't have the budget for that area but thought they came close if they could get even more of a discount. They asked for a lower price and had a million questions before booking. We always said no to further discounts.

Anyone who asked a lot of questions before booking was almost always a problem.

[Anonymous]

I don't think its a bad sign at all, mainly because I'm about to try it. We are high-dollar, long-term renters who don't see the value in home ownership. After six years at the same single-family property, we will be looking to upgrade soon. I see very similar, very nice homes on the market with staggering price differences. If I like the house but think it's overpriced, I'll offer less, understanding that many landlords would rather have it rented to a respectful, long-term family than keep it on the market. I guess we'll see how this strategy works out!

[Anonymous]

I rented for a long time in DC and was a landlord for 9 years. As I renter I both bid up rent and negotiated discounts. I wouldn't worry about a tenant negotiating if everything else checks out OK. If anything it just means they're smart and/or detail oriented...my tenants that asked a lot of questions about the lease were honestly the best ones. It doesn't sound like they're asking for that much of a discount.

[Anonymous]

Not sure how people
Are saying rental market doing good but I see lot of rental in clarksburg and south Germantown area on Redfin which didn’t get tenant for 2-3 months ..

[Anonymous]

I don’t think it is a red flag, especially not in this market. Do a thorough check on the applicant, like you would any tenant. Make sure he/she has a job, landlord references and excellent credit/no foreclosure etc. if all checks and they aren’t asking about other material terms, take them!

[Anonymous]

No don't do that, it shows what type of difficult person you will be renting to. Always look for high income, high credit score and willing to pay at or above market rates
They may already be barely scrapping by

[Anonymous]

Anonymous wrote:

Anonymous wrote:What is her credit like? What kind of job does she have? What does her social media look like? These will give you a better sense of the tenant.

+1 . THIS.
Also, apartments are hard to rent in November. I assume you're asking on DCUM because you're limited in the number of interested tenants. If everything else is a green light, I would go ahead and reduce the rent for a longer term contract.

Why would OP want to be stuck with a low rent tenant for years in a seasonal market that usually commands higher rents in spring/summer?

[Anonymous]

Why not do the background checks, make it a one year lease with a percentage escalator? That way if they suck, you don’t have to renew and if they are terrific, you keep them and can either raise the rent or not.

[Anonymous]

Anonymous wrote:I’ve had good tenants and PITA tenants. They all asked for a discount. It’s not an indicator.

My worst tenants - beyond PITA - were the ones who paid below market (my fault).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How long has it been on the market? I would be inclined to tell them you'll get back to them and look for a full price renter.

One month (there was another offer but the credit score was too low), which is surprising b/c it took me less time to find a good tenant last year. And I've already cut the price. So with this applicant's offer it'd be $200/mo lower than what last tenant paid. I guess it's not a big deal in the grand scheme of things. But I'm wondering if it's because of the market (with government shutdown and everything)...

I think the potential tenant is probably choosing between your place and another rental that is less expensive. It’s not a red flag for the tenant’s personality, you’re just overpriced for the current market conditions.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What is her credit like? What kind of job does she have? What does her social media look like? These will give you a better sense of the tenant.

+1 . THIS.
Also, apartments are hard to rent in November. I assume you're asking on DCUM because you're limited in the number of interested tenants. If everything else is a green light, I would go ahead and reduce the rent for a longer term contract.

Why would OP want to be stuck with a low rent tenant for years in a seasonal market that usually commands higher rents in spring/summer?

I don’t know, maybe because it’s better than sitting vacant u til it can be rented in the spring? lol

[Anonymous]

Anonymous wrote:Why not do the background checks, make it a one year lease with a percentage escalator? That way if they suck, you don’t have to renew and if they are terrific, you keep them and can either raise the rent or not.

Yes! If background checks out (esp credit and landlord references), do this!!

[Anonymous]

Anonymous wrote:I have an applicant asking for $125/mo below the listed rental price (I'm asking for around $2600/mo which is what the Redfin estimate is). I'm open to the price they asked for since it'd be a 24-month lease. However, I'm wondering if it's an indicator of certain type of personality, e.g. are they likely to be difficult to deal with once they become tenants? That would be a scenario I wouldn't want to deal with.

Please advise. My experience as a landlord is relatively limited (I've had three long-term renters before and none of them had asked for lower price), so I'd appreciate your feedback!

Never hurts to ask. The real "tell" is in how they react to negotiations.

[Anonymous]

I had a prospective tenant apply and then ask for lower rent. Her credit was decent, so I agreed. Then she said she didn't want to pay the water bill quarterly because it was too expensive. I told the realtor to tell her if she can't afford $120 quarterly, especially with a rent reduction, she can't afford the house. Give an inch, prepare to be asked for more.