Rent is ALWAYS negotiable?
48sChallenges a common belief and immediately grabs attention with a bold claim about rent negotiation.
βΆ Play ClipAI Summary
In this video, Bob Bordone, a negotiation expert, explains that rent is always negotiable and provides a four-step framework for successfully negotiating rent with landlords. He shares personal stories and practical tips to help viewers approach rent negotiations with confidence and strategy.
Chapters
[00:33]
Rent is always negotiable
Bob asserts that rent is always negotiable and advises always asking, even if the initial response is 'take it or leave it.'
[01:00]
Research comparables before starting
Before looking for apartments, gather information on comparable rents in the area to avoid being taken advantage of.
[01:48]
Use precise numbers with justification
Bob shares a story where he used a precise number ($1369.84) based on comparables and property tax data to negotiate a lower rent, showing that a specific, justified number is more persuasive than a round one.
[04:14]
Create value beyond price
Negotiation isn't just about price; consider other terms like paying on time, longer lease, or guarantees to create value for the landlord.
[05:08]
Leverage your qualities as a tenant
Bob shares a story where he highlighted being a responsible, boring tenant to get a discount on a luxury apartment, emphasizing the value of reliability.
[06:09]
Know your BATNA
Understand your Best Alternative to a Negotiated Agreement (BATNA) before negotiating. A strong alternative gives you more leverage.
Rent is negotiable, and by researching comparables, using precise numbers, creating value, and knowing your BATNA, you can significantly improve your chances of getting a better deal.
Tutorial Checklist
2
01:48
When you find an apartment you like, gather detailed comparables (e.g., floor plans, property tax data) to determine a fair price.
3
02:29
Present a precise, justified number to the landlord, explaining why it's fair based on your research.
4
04:14
Identify non-price terms you can offer (e.g., on-time payment, longer lease) to create value for the landlord.
5
06:09
Determine your BATNA (best alternative if no deal) before negotiating to strengthen your position.
Study Flashcards (5)
Is rent always negotiable?
easy
Click to reveal answer
Is rent always negotiable?
easy
Click to reveal answer
Yes, you should always ask, even if the initial response is 'take it or leave it.'
00:33
What is the first step before starting your apartment search?
easy
Click to reveal answer
What is the first step before starting your apartment search?
easy
Click to reveal answer
Research comparable rents in the area to avoid being taken advantage of.
01:00
Why is a precise number more persuasive in negotiation?
medium
Click to reveal answer
Why is a precise number more persuasive in negotiation?
medium
Click to reveal answer
A precise number with a reason (e.g., based on comparables) appears more fair and justified than a round number.
03:47
What does BATNA stand for?
easy
Click to reveal answer
What does BATNA stand for?
easy
Click to reveal answer
Best Alternative to a Negotiated Agreement.
06:09
How can you create value for a landlord beyond price?
medium
Click to reveal answer
How can you create value for a landlord beyond price?
medium
Click to reveal answer
By offering to pay on time, committing to a longer lease, or guaranteeing to take good care of the property.
04:30
π‘ Key Takeaways
βοΈ
Rent is always negotiable
This is the core message that challenges the common assumption that rent is fixed.
00:33
π§
Precise numbers win
Demonstrates a powerful psychological tactic in negotiation: anchoring with a specific, justified figure.
03:47
π‘
BATNA is your leverage
Explains a fundamental negotiation concept that applies beyond rent, making it broadly useful.
06:09Full Transcript
[00:00] but ugh, it is out of your price range. So how do you decide if rent is negotiable
[00:12] how do you do it? on how to negotiate your rent and when to decide (upbeat music)
[00:33] Rent is always negotiable. I mean, you should always ask, "Nope, it's take it or leave it."
[00:48] with the idea of, "Yes, let's negotiate." First, before you start looking,
[01:00] at UCLA in September. and start looking at comparable apartments, The more information you have before you begin that search,
[01:17] to avoid getting take advantage of, Second, once you've found the apartment you really like, about other rents in that complex.
[01:33] try to get comparable rents in that neighborhood. for my last year of law school. and I found an apartment in an 11 unit building.
[01:48] And at the time, the landlady was asking for $1,800 a month. of every other unit in that building Now, as you can imagine,
[02:01] but other people actually told me the rent. and certainly in Cambridge, Massachusetts,
[02:13] and you could get floor plans of each unit in a building. to determine the property tax. I got a floor plan of the other 10 units in this building,
[02:29] And then I went back to the landlady and I asked her, And so what I was really doing there I was trying to make sure that I wasn't just paying
[02:47] She looked at me and was like, "How about 1,700?" but I didn't want a haggle with her. And so I said, "Well, I'd be willing to pay 1,800 or 1,700."
[03:04] is getting into a haggle with you. in this kind of confused way and then I said, for this particular unit would be 1369.84,
[03:21] And then I used the comparables that I had researched to show her why 1369.84 was a fair and appropriate number.
[03:33] she looks at me and she says, "Okay, 1369.84 it is." beginning his last year in law school, I was like, "What?"
[03:47] But in retrospect, this actually makes a lot of sense when you have a very precise number with a reason to it,
[04:00] And so if there are ways that I can get comparables to the actual rent of the unit that I want to live in,
[04:14] Third, when I'm thinking about a negotiation over rent, of possible things we're negotiating So, what do I mean by that?
[04:30] that I will always pay the rent on time. Maybe I'm willing to live here for more than one year, Or maybe I can make some guarantees
[04:44] So I will give you another story, flash forward almost 15 years later for my sabbatical.
[04:56] And I found this really, really beautiful unit that ordinarily would completely outside of my price range. it had really nice wine in there.
[05:08] on the owner of this building, and this is why he was renting the New York apartment. who had made a lot of damage to the unit.
[05:23] was having somebody in there with a great deal of care. "Hey, I am an incredibly boring
[05:40] Most of the time I'm here, at NYU Law School doing some writing. I can guarantee to you
[05:53] that I'm gonna gonna take very good care of the rent, any of your very clearly expensive wine." I got an incredible price for the apartment and bonus.
[06:09] Last really important point here before beginning the negotiation over rent. Your BATNA is your best alternative
[06:25] if you don't reach an agreement. if I don't reach an agreement on the rent, Am I gonna stay in Chicago instead of moving to LA?
[06:40] Or do I have another unit but actually better than staying in Chicago Before I begin the negotiation with a landlord,
[06:54] In other words, I want an alternative with the other side. in a very hot real estate market,
[07:10] may not make much of a difference 10 seconds later to somebody else who's online, But in most situations,
[07:24] the better will be your hand across the negotiation table. So to review, first, if you're wondering can you negotiate your rent, the answer is yes.
[07:38] If you try the worst possible thing here are the four tips. before you start looking.
[07:51] get as much information as you can and use that in your negotiation. as a way to create value and incentivize the landlord
[08:07] And fourth, improve your BATNA, If you wanna keep on learning how to improve a negotiation, How do I negotiate when the other side has more power?
[08:24] click, click, click, click.