How To Bargain For Lower Rent In The Current Market?

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  1. #1

    How To Bargain For Lower Rent In The Current Market?

    Hi all,

    I've noticed rents have come down in the past couple months, but not sure how low they will ultimately go. Wanted some advice on how low to offer on a place we are interested in. Specs:

    Location - Kennedy Town
    Size - 4 bedroom, 2 bath
    Asking - $38,000

    Would it be crazy to offer $25,000 and hope to negotiate up? Or should the offer be what we ultimately want to pay, $29,000?

    Not sure if this bargaining thing works on apartments, too or just with electronics and knick knacks.


  2. #2

    you can bargain with rents as well. a nice way is to mention that you like the unit but your rental allowance is only HKD 25K, and ask the landlord if they will consider it.


  3. #3

    Join Date
    Jan 2006
    Location
    Shanghai
    Posts
    9

    There is no harm at all in putting an offer for $25,000 because this will test the water of the landlord and see what they come back with. The basics of bargaining is simple......Party A thinks their product or service is wrth "X" and Party B thinks it is worth "Y" so you can never go too low becuase this is what you think it is worth. It's a great way to find out how desperate the landlord is to rent out and what kind of concessions they will give. If they keep talking to you then it means they may be interested but if after a day or so there's no reponse then go up a little more but not to the full $29K. Use this as the last card to say..."OK, I am only on $25K but have pleaded with my boss to give me more and he's finally agreed to $29K. But this is my last offer as I can't get anymore". He may want to round it off to $30K to push it into his court of 30+plus K. If this is the case it would be worth your while paying the $1K yourself if your company won't. That's my two bobs worth. Good luck and let us know how you go!!!

    Adrienne Farrelly
    Shanghai Properties
    Shanghai Properties


  4. #4

    Join Date
    Oct 2006
    Posts
    4,905

    I've never paid the asked price on a rental property but you have to look like you're prepared to walk away. A good agent will sense if you love the place and are just trying to lower the price. The agent is also losing money with a lower deal so they keep a keen eye of your demeanor and discussions.


  5. #5

    Join Date
    Jul 2006
    Posts
    394

    It depends on what the market value of the flat is. Is $38K the pre-September rent, or the current market value? If 38K is the market value right now, don't expect to knock off more than 4-5K if you are lucky. Local HKers have been known to leave a flat empty rather than to sell/rent at a lower price they don't want.