Negotiate On Tires, Not On Rent

Recently, due to a blown tire, I had to take my car to the shop to replace all four tires. Having done my prior research, I wanted to purchase the cheapest econo tires this shop sold. I barely use my car, so I opted for econo tires at $36 a piece. The salesman pitched me an upgraded tire option. While the tires looked great, they were $58 a piece, far above my desired spending range. I held fast and explained that I wanted the econo tires at $36, however, they weren’t in stock. To my surprise, the tire shop offered me the $58 tires for $38 a piece. The fact that the price of tires is negotiable was news to me. It got me to thinking about the negotiation of other items in life, in particular, the price of rent.

There are a variety of situations where price negotiations are a great idea (apparently when buying tires). However, what should you do as a landlord when an applicant asks for a negotiation on rent prices? Do you give in and lower your price because the rental has been sitting on the market for a while? The answer is a little more complicated than in the case of selling tires.

There’s Negotiation And Then There’s Lowered Rent

The first thing to think about is the difference between negotiated rent prices and lowered rent prices. Negotiation involves a tenant who asks you for a lower price than the one you have listed. A lowered price is something you control and takes place regardless of applicants.

While coming down on your rent price can be a wise decision, negotiating rent prices can sometimes land you in a troublesome spot. 

The Accusation Of Discrimination

The biggest risk you run when you decide to negotiate rent with an applicant is being accused of discrimination. The following example plays out how a rent price negotiation can land you in hot water.

A family is interested in your property. They ask you about the price of the rental. You tell them the listed price, which is $1,500. The family says that they cannot afford the price and move on to look for a new place.

The property stays on the market for a while and you leave your listed price at $1,500. Next, a single guy comes to see the property. He is interested and seems like a perfect fit. He says he can’t afford the $1,500 but offers you $1,200 a month in rent. You decide it’s better to have the place filled with a great tenant and take a cheaper price than to have it sit on the market.

Unfortunately, the family isn’t having any luck trying to find a place and they stop by your rental to see if they can find your contact info again. They meet the new tenant and in conversation about looking for a place to live, they find out he is renting the place for $1,200 a month.

Deciding that they were unfairly discriminated against due to their family, they bring a lawsuit against you for familial status discrimination.

Lower Your Rent Prices Of Your Own Accord

If you do find yourself in a situation where you have overpriced your rental and you need to lower the price to fill your vacancy, be sure your handle the situation in a way that protects yourself. Make a rent price change that applies across-the-board for everyone.

Update the price on your rental listing sites and on flyers. Call interested parties with the new price. If you handle it in a way where it applies to every interested party, you can protect yourself from accusations of discriminatory practices.

What about you? Have you changed your rent price? How did you handle the situation?