Beware Sneaky Tenants

[PEERless]

See Christopher Solomon's article, How to Hit Up Your Landlord for Cheaper Rent, Perks. Your tenants might soon try these sneaky negotiation tactics. Be ready. I've listed the main ideas:

• If your rent is going to be late, pick up the phone
• Barter services in lieu of full rent payments
• Suck up with cookies and gifts
• Show that you're ready and willing to move somewhere else if the renewal process doesn't work to your satisfaction
• Be a sleuth: find out what the vacancy rate is in your building, learn the rent for a similar unit above you, find any discounts down the street
• Meet with the landlord, present the information, and tell him that as a good tenant, this is what you need in order to stay
• Ask for more than you expect to get
• Sign a long lease in return for lower rent
• Pay a few months in advance in return for lower rent
• Pay early in return for lower rent
• Ask the landlord not to do minor repairs in return for lower rent
• Avoid extra fees for pets
• Lobby for upgraded appliances or expensive repairs
• Present a list of all the spending you do around the complex, and try to get additional fees like parking and bundled utilities knocked off the bill.

Two idea were particularly disturbing to me:

1. Sign a long lease in return for lower rent. Please! We all know that when the tenant breaks the lease and disappears there is little chance of ever recouping the rent promised to you. Longer leases are not worth the paper upon which they are written.
2. Ask the landlord not to do minor repairs in return for lower rent. You tell the tenant you're going to be upgrading the carpet or repairing some tile. The tenant says they don't mind the minor flaw, but they'd love a discount instead. Psh! It's still your house. Skipping repairs and upgrades now means having more to do later when you are trying to get a new tenant or buyer.

 

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[TOLDUSO]

Ive never had any of those problems because I run credit checks and then I pretty much pick and choose who I allow to live in my rentals after talking with them a few times. Might sound "unfair" but its allowed me to avoid any sort of BS... Dont try to say that its illegal either...

I recently even offered my tenants to pay me late with no fees after the holidays if they were strapped for cash. You wouldnt believe how happy that made them and for the ones that took advantage of the offer, how eager they were to pay me when the time came around. I may have even secured some extended leases with some of them. We will see...

The way you both handle and treat people goes a long way. :coffee:

 

[Bilgefisher]

• additional fees like parking and bundled utilities knocked off the bill.

Two idea were particularly disturbing to me:

1. Sign a long lease in return for lower rent. Please! We all know that when the tenant breaks the lease and disappears there is little chance of ever recouping the rent promised to you. Longer leases are not worth the paper upon which they are written.
2. Ask the landlord not to do minor repairs in return for lower rent. You tell the tenant you're going to be upgrading the carpet or repairing some tile. The tenant says they don't mind the minor flaw, but they'd love a discount instead. Psh! It's still your house. Skipping repairs and upgrades now means having more to do later when you are trying to get a new tenant or buyer.

I'd have to agree in 95% of the cases. There are a few exceptions. The first investors I worked with did win a 28k judgment against tenants who skipped out after month 3 on a 24 month lease. I doubt they will see much of it, but I believe they put a lien on the house the tenants bought and trashed their credit. Funny thing, all they had to do was pay 1 month rent cancel penalty if they would have simply talked to the landlord instead of just bailing.

Btw, I appreciate these threads. I'm in week 8 (so green I can still count in weeks) as a landlord, so I am trying to soak up any tidbits I can.

 

[wildambitions]

I used to be a tenant. My husband and I asked for many of these things and were good for our WORD. Although, I would agree that there are many that would take advantage of and abuse the offers and NOT keep their word, not all tenants are out to screw their landlords.

One thing you can do as a landlord though, is find out what the circumstances for making the offers are. If a tenant is upfront with you, perhaps there is a bit of trust that can be gained. When we did have circumstances that made these types of things worthwhile to us, we brought them up to our landlord BEFOREHAND and made sure WE were protected from being used/abused or taken advantage of by the landlord. At the same time, landlords, be sure that the tenants are doing what they said they would do, and make sure you have the appropriate clauses should their word NOT be trustworthy.

A technique that worked for us, as tenants, was reduced rent in trade for household/yard maintenance. The catch was that our rent was the same and the landlord paid us back AFTER their rent was received.

Important lesson here: Treat others the way you want to be treated. Always a win-win!

 

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[Bilgefisher]

Important lesson here: Treat others the way you want to be treated. Always a win-win!

Great advice. I have presented myself as the property manager and not the evil landlord. If tenants ask I'll tell them I own the property, but otherwise I'm just the property manager working for the landlord. Just another working stiff like the tenant (which is entirely true). We'll see how that works for me. I also record every time I talk (and what we talked about) to tenants or venders just in case.

 

[PEERless]

I pretty much pick and choose who I allow to live in my rentals

I had that luxury last spring before the local economy flipped upside down. Now I can't even get a tenant to call. There are so many rentals available. Be happy for your luck.

...I doubt they will see much of it, but I believe they put a lien on the house the tenants bought and trashed their credit.

Yeah, I should have clarified. Of course you can take them to court, and you might even win; but you will probably never be paid. I will only fight, if there is a reward involved. Principle is not enough to go to court.

...not all tenants are out to screw their landlords.

Of course not! I admit to using the word "sneaky" to get thread-views. No, if I'm a tenant again in the future, you can bet I'll use all of these negotiation strategies and more!

I have presented myself as the property manager and not the evil landlord.

This is what I have chosen to do too. The term "landlord" evokes a feudal system of lords and serfs. Best to pose as just another serf.