Tenants looking for “good value” aka “low ball offers”

[Jeni Nikolova]

Hi! My husband and I own a home in CA and moved to another state for work but decided to rent it out so we keep the option to go back there some day.

However, our first tenants were a military family and left before their 12 month lease expired (we do not live near a military base).

Recognizing the challenges covid-19 poses, we reduced the rent so it is below the cost to cover mortgage and property taxes.

There is one family that seems to be interested, and quite pushy, but has made an offer that is 10% below our adjusted asked rent.

They gave us a deadline to get back to them, and basically offered a “bonus” payment that offsets their low ball offer a bit but even with that we are looking at 5% discount.

And they insist on the 10% discount for the second year (hence their framing of the “bonus” payment). However, their move in date is 30 days out from the commencement of the lease.

If we accept their offer they require the exclusive right to negotiate the lease and the posts marketing our home to be taken down.

This has given me such a headache.

My husband is almost ready to give in but I don’t feel right about this.

Not only in terms of the 10% discount but also concerned about the maintenance they may require over the duration of the lease.

Has anyone been through a similar experience? Any words of wisdom?

[Account Closed]

I'll predict that this type of person (already quite pushy, lowballing you, etc) will be a continuing pain in the butt if you do take them.  There's an adage I've heard many times here about how its better to have a vacant unit than a bad tenant.  I also am not superstitious about much except for the rule to "trust your gut."   I would actually decline them completely if it were me. 

About COVID causing you to rent it out below your costs, are you sure that market is that heavily affected?  Demand has not dropped off in my market, but showings are more complicated now. 

How likely do you think it is you'll actually move back there?   Also, if COVID is affecting that market, it might even be such that its better to sell now and buy later *IF* you move back. 

If you do keep it, I would explore the possibility of hiring a management company.