Join Australia's most dynamic and respected property investment community

Negotiating a lease as a tenant

Discussion in 'Property Management' started by Jmillar, 28th Jul, 2016.

Tags:
  1. Jmillar

    Jmillar Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    49
    Location:
    Sydney
    Hey guys,

    I'm 24yo and own 9 properties so I've got a bit of experience being a landlord but never rented myself before!! I'm looking to rent an apartment with a mate and have a couple of questions. Location will be in the Inner West, Sydney.

    1) It's better for me to not go on the lease, and he is happy to go on the lease and I will then pay him. I assume that property managers/Landlords are okay with this and there's no issue telling them this is what we want to do?
    2) When there is a fixed price shown, is it common to try and negotiate this price, or do tenants generally always pay the asking rental? Would I be frowned upon if I try and negotiate the price down?
    3) Some ads show something like 'By Negotiation $470-540/week' with a ridiculous range. What are some things that could work in my favour when negotiating the price? Perhaps offering to pay 2 month's rent in advance? I'm on a high income but that won't mean anything to them if I'm not going on the lease so I can't really use that to my advantage...

    Any advice would be appreciated! Also if anyone has a 2bdr unit in the Inner West I'd be happy to chat!

    Cheers
     
  2. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,978
    Location:
    Brisbane
    I would be suspicious if two adults wanted to live in my IP but one did not want to be on the lease. I would not accept that. It means the person on the lease could leave and I have someone living in my IP who is not on any lease.

    As an owner of 9 IPs, how would you feel if a prospective tenant tried to haggle with you on the weekly rent asked? If there is a range I'd be asking the agent why? That sounds crazy and I've not seen it before.
     
    Shazi, DiligentPM and mr500 like this.
  3. Ted Varrick

    Ted Varrick Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    572
    Location:
    No Mans Land
    Would you pay your rent on time, look after the property, and treat the neighbours, some who are elderly, in a quiet block, with due courtesy, assuming that you would expect the same from each and all of your tenants?
     
  4. Schmoo

    Schmoo Active Member

    Joined:
    31st Jul, 2016
    Posts:
    29
    Location:
    NSW
    Contents Insurance on rented properties don't often extend when an "insured" tenant is sharing the property with other unrelated people (whether named on the lease or not). Just be mindful, if this lease scenario eventuates for you, on how it may affect any contents insurance you may require. (Presuming you want contents insurance cover for your possessions).

    As for not being named on a lease, if you disclose this any prospective LL will probably raise an eyebrow. They may presume you have a criminal record or bad previous rental history etc.
     
  5. Sydlad

    Sydlad Member

    Joined:
    5th Jul, 2015
    Posts:
    22
    Location:
    Sydney
    If the area you want is in high apartment oversupply then you should get a good deal

    I moved to Brisbane for a contract and signed up for 6 months

    A periodic lease suited me as didn't know if I wanted to extend contract or move to another role so I managed to negotiate that with no increase

    If you prove you are a good tenant in an oversupplied market landlords will bend over backwards to keep you
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,593
    Location:
    Sydney or NSW or Australia
    Just get your mate to put the application in for himself and his 'partner', without disclosing - a good agent will push for all adults to be on the lease (& bond form).
     
  7. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,978
    Location:
    Brisbane
    Why don't you want to be on the lease?
     
    Ted Varrick likes this.
  8. Jmillar

    Jmillar Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    49
    Location:
    Sydney
    Thanks for your responses.

    We ended up securing a unit - my mate is on the lease by himself and he made it clear that I would also be living there - agent had no issues with it. Also speaking to other agents they didn't seem to mind.

    We ended up paying the asking price for a unit because we really liked it, but on other properties, agents were inviting us to make offers below asking prices which I thought was interesting.

    Hope this is helpful for anyone else in my situation...

    Cheers
     
  9. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,722
    Location:
    Sid en e - olympic city
    If you would live there, you need to be on the lease if it were put to me, mainly for insurance reasons but also so your responsible as well.

    On negotiating, if it shows a range, I would, if your already a landlord, you probably know what rent you should be getting, so how would you take an application that is trying to lower the rent ? I would look at it if asking top dollar and something special about you, or you were going to perform extra maintenance maybe.
     
  10. DiligentPM

    DiligentPM Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    443
    Location:
    Brisbane
    All adults living in a property are required to be on the lease agreement
     
  11. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    907
    Location:
    Perth, WA
    Required by who?
     
  12. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,604
    Location:
    Adelaide, SA
    By office policy to protect landlords interest.
     
    DiligentPM likes this.
  13. Shawn

    Shawn Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    148
    Location:
    Sydney, NSW, Australia
    OP, your the same age as me but with 9 properties. Congratulations!
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,593
    Location:
    Sydney or NSW or Australia
    So I couldn't rent through your agency if my application was successful but my partner was away from home when I was required to sign the lease or moving from interstate but I came to lease the property without them?
     
  15. DiligentPM

    DiligentPM Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    443
    Location:
    Brisbane
    Taking into account context as well. The comment was a general position and with everything in life circumstances context is taken into account. I do hope this offers more clarity ..