Active Rain December 10, 2010

Westchester Rentals Don’t Have High Negotiation Margins

Just a quick thought on rentals after an experience one of my agents just had. We have a situation where we need to get a client into a rental. They need something specific, she found one they liked and they made an offer. However, the offer was only for about 80% of the monthly rental price. In other words, if the unit was on the market for $1000, the client offered only $800 per month. The landlord declined. By the time we raised our offer, someone else came in at full price and swooped it away. 

Rentals are different animal from purchases in our area, and the market is relatively healthy when a place is priced right. Even if there is no other offer, if a place fills a specific need, such as a first floor entrance or proximity to a train station for example, it is unwise to be too much of a wheeler dealer when submitting offers. There is a far more open minded appetite for low offers on purchases than rentals. 

While I have your attention, the wise thing to do in submitting an offer here in Westchester is to include a fully filled out rental application (name, address, employment, current address, and landlord references) as well as the first page of the credit report showing your score. This is what landlords need to make a judgement and withholding this sort of information is considered a red flag. 

We happily service rentals at J. Philip Real Estate. Some brokers aren’t excited about them because they aren’t super lucrative, but we are all about putting a roof over your head. We also know that many of today’s renters will be buyers down the road, and we want to establish a relationship when they need us, not just when we need them. I’ll put my money where my mouth is: Anyone who hires J. Philip Real Estate to represent them in getting a rental in the first quarter of 2011 (Jan 1- March 31- we’ll include leases that start April 1 because I’m that kind of guy) will get a rebate equal to half a month’s rent (often our rental fee) if they buy a home with us in the 3 years after. 

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