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How firm are rental prices?


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We're selling our [new] house and planning to rent for a year or two (or more, depending upon the economy at that point). I've been looking at rentals in the area(s) we would be moving to, and there is one rental that is well outside of the "going rate" for the area. The house is a bit larger than most of the others, but not enough to justify a $600/mo difference in price. The only other one in that price range is on acreage, with a barn for horses. :D This house is on a city lot, and the average house in that neighborhood would rent for $2200-2300/mo.

 

It's a house that, if the rent is negotiable, I would take in a heartbeat (I have always LOVED the floor plan...since I first saw it 5 years ago). I have seen on some of the rental information (price firm, or something along those lines), and see nothing on this one.

 

I have no experience renting...so I'm just wondering if making an offer $400-$500 a month below their asking price would be really far outside the norm for renting.

 

Thank you.

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The rental market is 'hot' right now, BUT you are bringing stability and a more than one year lease to the table, right? You are familiar with the area, you are a homeowner already -- I say go for it and make your best, informed offer and be prepared to support your offer with facts.

 

Good luck -- :thumbup: --

 

Do you need packing boxes? I have tons of packing boxes.;)

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It can't hurt to ask, but usually rent isn't flexible. Maybe they want to be sure of getting a certain type of renter- one who can afford to take care of the place. I agree w/ Mariann though, since you want long-term, maybe they would be willing to come down on price w/ a 2 or 3 yr. contract. Good luck, I'll keep my fingers crossed for you!

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I think it won't hurt by offering.

 

With the economy the way it is, many people are renting out former residences because they can't sell them. (We are.) The asking price may be based on what they "need" to cover their mortgage/taxes, rather than a realistic view of the rental market. You might offer and tell them to think about it for a few days before getting back to you. This would give them time to reassess their price when no other offers come in. I'd also consider telling them why they should rent to YOU (they can see your current home condition, you have excellent credit, you are responsible, etc.).

 

We've never had a renter offer below asking price, but that is more of an indication that we were asking market value.

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I have successfully negotiated the price on three rentals.

 

Our first rental went down $300 per month. We had to leave that house due to dangerous asbestos.

 

Our next rental was a more complicated negotiating process. We used a realtor. The owner was disappointed at not being able to sell the house, and wanted more money in rental than we could afford. There was some back and forth. We ended up negotiating the price down $300 per month and in so doing, agreed to take care of snow removal and garbage bills ourselves. Our lease says we do not have to weed the garden, but we do a bit anyway because we like the landlord and want to keep her happy.

 

In the process of getting that rental, I also bid on another, vastly overpriced rental. AFTER I had agreed to my current rental, the owner of this other rental came down a full $500 per month if we would agree to a 2-year lease and deal with garden/lawn and snow and garbage ourselves. We did not agree because we were all set with the rental in the paragraph above.

 

Ask sweetly. Stand your ground on what you can and cannot afford, sweetly. Be prepared to really, truly walk away if they cannot meet your terms. (Sometimes the walking away sparks an agreement; sometimes it does not.)

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It can't hurt to ask, but usually rent isn't flexible. Maybe they want to be sure of getting a certain type of renter- one who can afford to take care of the place. I agree w/ Mariann though, since you want long-term, maybe they would be willing to come down on price w/ a 2 or 3 yr. contract. Good luck, I'll keep my fingers crossed for you!

 

We could sign a 2-3 year contract, but we would need a contingency regarding being transferred out of the area (dh works for the DoD, and there is a lot of talk about moving his command, but nothing firm. They *know* two groups will be moving in the next 12-24 months, but no decision on the remainder of them...the thought is that they will probably string out the move over 5 years). There is also a promotion possibility which would require relocation. I know that type of thing is pretty common around here...orders are orders. :p)

 

I told dh that if we move into this house, he's going to have a tough time getting me to leave. :D Seriously, I love this house THAT much. I remember when it was put up for sale 3 years ago (right around the time we got our land). I was seriously kicking myself about having bought the land!!!

 

Well, when we're ready, if there is no lease pending, we'll make our best offer and see what happens! If not, there are still 15 houses that will be good.

 

I have heard that the rental market is "hot," but there are as many rentals as there are houses for sale in our area...houses that are priced right usually have offers within 7-14 days, many times with multiple offers. There just isn't much available right now. The rental prices are clustered between 1900-2200/mo (usually, the lower the price the older & smaller the house). Most of the things we're looking at are priced at $2200.

 

We're looking for something we can be comfortable to live in long-term, if need be. If we can't find something that says, "home" -- we'll take the cheapest thing we can squeeze into...lol).

 

Thanks.

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Tee-hee! I e-mailed a realtor who has a house for sale for $365k that's been on the market for 90 days (unusual...but probably speaks to the fact that there are TWO new developments going in down the street starting in the low 300's...). Anyhow, I asked if they might be willing to rent vs. buy -- a resounding YES. Not that I need any more choices in our price range...hahaha!

 

Now, we just have to get this house finished and LISTED. House not too far from us (5 miles) just CLOSED. It was on the market for 9 days. Sold for 99% of asking, no concessions. Praying something similar happens for us!!

 

Thank you all for your encouragement. I appreciate it.

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Tee-hee! I e-mailed a realtor who has a house for sale for $365k that's been on the market for 90 days (unusual...but probably speaks to the fact that there are TWO new developments going in down the street starting in the low 300's...). Anyhow, I asked if they might be willing to rent vs. buy -- a resounding YES. Not that I need any more choices in our price range...hahaha!

 

That is SO wonderful!!:001_smile:

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Prior to our move here, we have always lived in apartments. I know that their prices are not set in stone so it couldn't hurt to haggle a bit with houses. I would try to offer something in exchange. For us, my husband would do repair their computers at a set rate off our rent. There were some months when we had zero rent to pay which was wonderful. He would ask if we could "stack up" our 'barter dollars' and have no rent for December/January. The good old days of being absolutely broke....lol

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  • 4 weeks later...
As a landlord, every single tenant has haggled with us. And we usually haggle back! So rental prices are not firm.

Conversely, I never ever haggle with a tenant. I know what my unit is worth and I stay on the low end, in order to obtain the most desirable tenants. If they haggle, I move on.

 

So...how did it turn out?

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