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

[Anonymous]

Anonymous wrote:Here is what I do
Price my rental properties few hundred dollars cheaper than my competitors in the neighborhood.
Because, of this potential tenants don’t ask me for a discount.
One potential tenant asked me for a discount and I told her I priced it better than most of the properties near by but if I don’t find someone in few weeks I will send you a text.
Since I had multiple applications I found full paying tenant.
The point is if they are your best option you have take it specially in November not a good time for rental.

Except that you just lost $2400 a year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here is what I do
Price my rental properties few hundred dollars cheaper than my competitors in the neighborhood.
Because, of this potential tenants don’t ask me for a discount.
One potential tenant asked me for a discount and I told her I priced it better than most of the properties near by but if I don’t find someone in few weeks I will send you a text.
Since I had multiple applications I found full paying tenant.
The point is if they are your best option you have take it specially in November not a good time for rental.

Except that you just lost $2400 a year.

But if it sits vacant for a month he also loses $2400 per year. Another month even more etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

I've asked for lower rents multiple times over the years. I don't want anything to do with my landlord after I sign the lease. I pay the rent and you leave me alone.

House inspection required every 30 days. You will receive 48 hours notice.

That's crazy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

I've asked for lower rents multiple times over the years. I don't want anything to do with my landlord after I sign the lease. I pay the rent and you leave me alone.

House inspection required every 30 days. You will receive 48 hours notice.

Twice to three times a month. NO NOTICE!

LOL I hope you put this in the lease. Otherwise you wil go to court.

[Anonymous]

House inspection every quarter is the norm.

[Anonymous]

Anonymous wrote:House inspection every quarter is the norm.

I have not been to my rental since 2018. And it was furnished. I will just assume they trashed it all and hope for best.

Trouble with long term below market tenants they are effectively squatters. I am in a catch 22 my tenants. I could raise rent $500 a month tops. But to do that I need to get them out. I am assuming after being in my apt for 8 years I might need 20K to 30K worth of renovations and repairs. Take me 5 years for pay back plus out several months rent.

My tenant know not to push too much for stuff as if they do I just wont renew. No not a slumload during 8 years the washer/dryer, oven, fridge wore out and I ordered new nice GE stainless ones from Lowes and they installed.

But I cant get in there to paint, redo floors, redo kitchen with them in there. One of them even works from home and they have a kid.

Honestly I dont get them. Yea I am charging below market But dude in 2018 they told me this was a 2-4 year deal as newly married and dont want to go starter home or condo route want to jump straight to trade up home. Guess what they missed that boat.

I feel like I am their parents now. No I am not. But by 2028 things will break big and I will just not renew. I will renovate and get a full market tenant or sell.

[Anonymous]

^^^ What don't you get? It seems like you understand the situation perfectly. Your tenants have below-market rent, and the cost to buy dramatically rose over the past five years. Sure, we all wish we had a crystal ball in 2019 and could have seen the rise in prices, but it's not really fair to expect that. So now, they're being total rational -- it wouldn't make financial sense for them to buy even if they were paying market rent, and so with below-market rent, it's a no-brainer for them to stay put.

[Anonymous]

Did you give them a 10-year lease? Why wait until 2028 to tell them you aren’t renewing??

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here is what I do
Price my rental properties few hundred dollars cheaper than my competitors in the neighborhood.
Because, of this potential tenants don’t ask me for a discount.
One potential tenant asked me for a discount and I told her I priced it better than most of the properties near by but if I don’t find someone in few weeks I will send you a text.
Since I had multiple applications I found full paying tenant.
The point is if they are your best option you have take it specially in November not a good time for rental.

Except that you just lost $2400 a year.

That assumes you rent in the same time frame at the list price.