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Prop prices dropped - how to approach rental offer

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  1. #1

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    Dec 2013
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    Prop prices dropped - how to approach rental offer

    so we all know property market is soggy now. props are down 10-20pct in value. i am trying to move, found a place, and donnot how to offer

    https://m.scmp.com/business/article/...-tracking-home

    area is kowloon tong. asking is 56k, last lease for similar place is 55k/mth (before mkt downturn).

    i am trying to offer
    53k/mth
    rental commence 4wk later from now, with 2wk rental free period. (i cant move so soon)

    is this too offensively low or totally fair offer?


  2. #2

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    Why don't you offer 50k then meet in the middle at 53k? Offering 53k leaves no room to negotiate...


  3. #3

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    Always go in 10% below asking price.


  4. #4

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    Quote Originally Posted by Flat Hunter
    Always go in 10% below asking price.
    Agreed, and be prepared to walk away. I got my last 2 leases 10% under asking. It could well be that there is more room to negotiate in current market but that depends on landlord, similar units vacancy rate etc. The landlord will balance the risk of 1 or 2 months no renter versus a quick deal.

  5. #5

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    so eventually managed to agree on lease that starts.1dec but they were adament about rent and got 1k off so 55k as per going rent. for rich landlords they could give rats arse about tabloid taking property crash, they are mortgage free and under no stress to take cheap deal... i sort of had to settle in the area due to schools for 3 kids, and few others i looked are absolute slum and this was something we wanted to settle.

    "prepare to walk away" is true when you have ample selection (eg. wanchai area 2 bed) but when u nail a neighbohood and its also 90pct owner occupied zone u sometime gotta compromise...

    but managed agent to sqeeze on comission... when landlord gave me counter offer i said fine can deal on their terms only if you half the commisson, i.e. asked for 1/4mth rent instead if half and forced into agency... i knew landlord had no more move and agent had a deal in front of him if he was willing to take a pain also

    Morrison likes this.

  6. #6

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    Well done! Agents are always more negotiable.


  7. #7

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    Quote Originally Posted by carfield
    so eventually managed to agree on lease that starts.1dec but they were adament about rent and got 1k off so 55k as per going rent. for rich landlords they could give rats arse about tabloid taking property crash, they are mortgage free and under no stress to take cheap deal... i sort of had to settle in the area due to schools for 3 kids, and few others i looked are absolute slum and this was something we wanted to settle.

    "prepare to walk away" is true when you have ample selection (eg. wanchai area 2 bed) but when u nail a neighbohood and its also 90pct owner occupied zone u sometime gotta compromise...

    but managed agent to sqeeze on comission... when landlord gave me counter offer i said fine can deal on their terms only if you half the commisson, i.e. asked for 1/4mth rent instead if half and forced into agency... i knew landlord had no more move and agent had a deal in front of him if he was willing to take a pain also
    You can give the agent a small red pocket for their help. They don't care about cutting commission as they usually only receive about a quarter or less of it anyway.

    Yes it's easy for people to say they get 10% off but then you never know what type of flat they are living in. It's difficult to find ones with good decoration at the 50k price point.

  8. #8

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    You can give the agent a small red pocket for their help. They don't care about cutting commission as they usually only receive about a quarter or less of it anyway.
    Be very careful of this - ICAC has prosecuted for offering unfair advantage in some real estate agent cases.
    TheBrit likes this.

  9. #9

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    You mean when the CE received a 100k rental for free. That's a bit different than a red packet with a couple hundred dollars and a property agent.


  10. #10

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    No. Say you offer the rental agent an incentive (I'll give you some cash if you can get me xxx...) it can be considered offering an unfair advantage.

    TheBrit likes this.

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