There are two types of prices in the market: “asking price” and “close price”. Tenants have to go through a not-so-easy challenge of “negotiating rent” to get the final price. How to negotiate rent in Vietnam?
The formula for successful rent negotiation is: Who + Why + When. Combined with ways to negotiate rent as new and existing tenants. All will be explained and clarified in this article.
How to negotiate rent & Formula for successfully negotiate rent
Rent makes up the bulk of your monthly expense category. Therefore, negotiating rent will save you some money towards your financial freedom. Negotiating rent is common, even if you are a new tenant or on a lease agreement. Negotiating rent is a smart way to generate rent that fits your budget.
Can you negotiate rent price?
Sure, you can negotiate rent price. You can negotiate rent before signing a new lease agreement and right within your existing lease.
In most cases, the landlord is the person doing the business. The owner’s business goal is to make money. That means they are not interested in making things more difficult or troublesome.
The basis of the rental price is calculated by the landlord based on investment costs, brokerage costs, costs for all kinds of risks (such as finding new tenants, tenants breaking the contract early, …). Therefore, tenants can completely negotiate rent prices. Landlords will favor reliable and financially stable tenants.
Why should you negotiate rent price?
You go to find the real motives behind the really worthy reasons and your level of satisfaction with the apartment. Here’s how to answer the question of why you should negotiate your rent.
You and I both understand that negotiating rent can be financially beneficial for us – saving money every month. Since rent makes up the bulk of your monthly expense list, saving “even a tiny fraction” of your rent can save you a lot of money year after year. You get new opportunities from the money you save – it’s great, isn’t it?
In addition to saving money from negotiating rent. Negotiating rent means even more to you.
Financial freedom
As a small example, if you save on rent about $50-$100/month. You will save $600 – $1,200 for a year. Not only will you save money on rent, but you will also have many other possible savings. And overall you will have a large amount of money to do other things or not have to worry about finances in the next few months. This means “increasing financial freedom”.
It’s really worth it
You worry that the real value of the apartment is not commensurate with the amount of rent you pay monthly. So, negotiating the rent will help ease your mind – decrease your anxiety. This is also a way for you to find out the “plus points” for the apartments, to make the final decision.
Better relationship
Saving on rent not only gives you more money to spend as you want, but it also improves your relationship with your landlord. If you conduct the rent negotiation respectfully and calmly, negotiating rent can be a great way for landlords to get to know you, and vice versa. At the same time, you are implicitly informing the landlord that you are a good tenant and are committed to staying for the long term. Negotiating rent is a great and open connection between you and your landlord – it helps both of you reach an agreement, be satisfied, and stay together longer.
Is it really worth it for you to negotiate rent price?
You are a new tenant, current tenant, or going to the end of a tenancy. And, are you considering whether to negotiate rent with your landlord? This means that you are looking for “Why” and “My satisfaction” about the quality of the apartment.
If you have 2 or more reasons or you are not satisfied with the quality of the apartment, you can search for a new apartment or negotiate rent price with a landlord. You do it because it’s really worth it for you to negotiate the rent price with the landlord.
If you don’t have any reason at all or your reason is too small. Either, you are truly satisfied or the apartment exceeds your expectations. You are willing to pay the rent with the landlord’s offer or you can even pay more. In this situation, you should not negotiate rent – because it will make you and the landlord unhappy and may not come to a successful lease agreement. More importantly, it takes away the excitement and triumph within you.
Successful negotiation rent requires not only really worthy reasons, but also the power of time-when.
When to negotiate rent? Negotiating rent in Vietnam
To get the best results when negotiating rent price, the most important thing is “When”. Make sure you do your rent negotiation at the right time. But, when is the best time in Vietnam to do it? Here are a few good suggestions for you.
1. Before you sign the rental agreement
Landlords are often eager to find tenants as soon as possible. They are pressured to take a loss when the apartment is vacant. The landlord will have solutions to come to a successful agreement with the tenant. This is a good time to negotiate the rent. Negotiating rent is one of the first things you need to discuss with your landlord before moving on to other terms of the contract.
2. Several months before your lease expires
You are really satisfied with your landlord and apartment. You want to stay in this house and renew your lease. But you are not satisfied with the monthly rent. You did a little research on rents in the area with friends and brokers. You notice that your rent is higher than elsewhere. This is a good time to negotiate a rent reduction with your landlord and extend your lease.
3. In the spring – Lunar New Year (happy new year)
In Vietnam, in the spring there will be a big occasion – it is the Lunar New Year. It is a time when everyone in the family will get together, visit each other and wish each other well. Lunar New Year will take place about a month. This is also a time when apartment vacancy rates are high – it is difficult to find new tenants and landlords are pressured to lose money when apartments are vacant. Landlords will find ways to save their business – by keeping current tenants. This is a good time to negotiate the rent price with the landlord.
How to successfully negotiate rent as a new tenant
The best way to succeed in any negotiation is to show the other side that they are also winning. It means you need to give something away or you prove you are worthy of the rent discount. Here are some good ideas new tenants can consider to successfully negotiate rent:
Evidence from the common market
Do a little research on the general market price in your area to find out exactly how much renters pay on average. This is an effective way to justify your rent reduction.
Pay several months in advance
You can offer your landlord a discount on your rent. And vice versa, you will pay several months in advance. The host will quickly agree to your proposal. Because landlords don’t have to worry about late monthly payments and they have a large amount of money to do other things.
Longer contract
If you have been planning to stay in the apartment for a long time – this is a good basis for negotiating rent. Ask your landlord about negotiating rent price. The host will agree to your proposal. Because, landlords want tenants to stay long-term, not be disturbed, or spend a lot of time and money to find new tenants. And don’t want to fall into the pressure of losing money because the apartment is vacant.
Do not use utilities or bundled services
If you do not intend to use facilities such as swimming pool, gym, tennis, BBQ, parking, … or do not use the accompanying services such as laundry, room cleaning, changing bed sheet, drinking water, washing dishes, … You can completely negotiate rent price with the landlord.
The number of people living with little or no pets
It is a fact that landlords are very fond of tenants who have a small number of people and do not have pets. Because, owners want to keep their property well, reduce management pressure, reduce operating costs of the building such as electricity, water, housekeeping, security, property wear, and tear, etc. Therefore, landlords often give some more favorable to this group of tenants. If you live with few people or don’t have pets, you can negotiate the rent price with the landlord.
The pressure of the apartment being vacated a lot
If you are lucky enough to know the number of vacant apartments in the building, this number is high then you advantage when negotiating rent.
These are just a few ideas to get you started in negotiating rent with landlords. Nothing is impossible, results will come if you do it. You can use one or two or all of the ideas at once to negotiate rent price.
“WHO + REASON + WHEN = SUCCESSFUL NEGOTIATION RENT”
How to successfully negotiate rent as an existing tenant
Negotiating rent as an existing tenant is often more difficult than as a new tenant. You need to know the “advantages of negotiating rent” – this is the key point in negotiating your rent.
To have your rent rebate request approved. In addition to you providing a suitable discount amount. Then you need to prove to the landlord that you deserve the discount. You need to answer the landlord’s question “Why reduce the rent”. Here are the advantages when negotiating to give you a chance to get a rental discount:
- History of paying your rent on time
- Always maintain and preserve the apartment in good condition
- No complaints from neighbors
- Longer rental period
- High cost when the apartment is vacant
The first thing you need to do is find a reason to negotiate the rent. It could be due to a job loss or financial hardship, a roommate leaving, poor property management, or apartments in the area with lower rents.
When your reasons are compelling and urgent enough, it’s time to discuss the rent reduction with your landlord. And, “when is the rent reduction most effective?” and “How much discount is appropriate?”.
See answers here: Request a rental discount: 6 common scenarios & Rent reduction letter template
In most cases, the landlord is the person doing the business. The owner’s business goal is to make money. That means they are not interested in making things more difficult or troublesome.
The landlord is still the final decision maker, they can decline your rent reduction letter. Landlords also have their own advantages when they consider your request for a discount. You did the best you can, don’t stress you still have some other options such as:
- Stay in – adjust your budget
- Looking for more roommates
- Search for a sub-tenant – early termination of tenancy
- Looking for a new place to live with cheaper rent
Rent negotiations as a new or existing tenant can be complicated. Landlords don’t accept it easily because of a sense of loss and you may not have a lot of negotiating experience.
However, be confident in your request, set your expectations on reality, and be respectful of the landlord throughout the negotiation process. If you can make a suitable rent reduction offer for good enough reasons, you are more likely to get what you want. Think of the amazing things saving on rent can do and act on it at the best times.
Good luck to you, my friend!
Note: These suggestions are for informational purposes only. No guarantees of legal or financial advice are made. Readers are encouraged to seek legal advice from an attorney or financial advice from professional professionals.
JHouse Content Team
The in-depth content development team on housing services for foreigners & Vietnamese in Vietnam. The content is simple, easy to understand, logically arranged to bring readers useful topics and information from real experiences. JHouse welcomes sharing & copying from you – Attach source & quote from JHouse, please!
