Negotiating Rental Prices

[xandreu]

Being British, I'm totally useless when it comes to negotiating and haggling. I know this is something I'm going to have to get used to in Thailand, but I'm looking to rent a condo in Chiang Mai, which inevitably involves some reasonable negotiation skills.

Are there any hard and fast rules when it comes to this? For example, when knowing the asking price, should I knock a certain percentage off and start the bargaining from there? If I looked at a condo which, lets say the asking price was 10000B, where should I start making an offer? If I make an offer too low, am I likely to offend or will I just get laughed out of the door?

Thanks

[iainiain101]

Britain has no export industry left to speak of, except its financial and consultancy services which depend on negotiation skills.

Napolean described us as a nation of 'shopkeepers'.

Dig deep and the skills should be there!

Failing that, just ask other people what they pay!

Iain

[cmbe]

My idea, asking price of renting is more difficult than the price of selling and you can see first what you get for that price and match with your idea what you are looking for or not, and other thing you can search the market price of renting in everage in the same area, more or less same option(such as, how many sleeping rooms, furnished/non furnished, which floor, air-con, internet, cable tv, telephone, parking, old or new building, how long contract, electric/water cost,....) that you get from the place where you want to ask discount price. In case that place have everything you need and the price is not so different from other place and you still want to ask discount price, then just say "Can you do something with the price?" (may be with your option to give to owner such as; long time rental) , if you do not say or ask anything 100% you get nothing but if you ask you still have chance to get it. good luck. I can tell you but for myself also not easy.

[hellodolly]

If you offer to pay six months or a year in advance you might get a break.

[MangoAndCo]

I never thought of negotiating the rent of a serviced apartment...

But sometimes longterm renters (min. 6 months) pay about 1000 baht less per month than when they rent for 1 or 2 months.

[endure]

Britain has no export industry left to speak of, except its financial and consultancy services which depend on negotiation skills.

Only the 11th biggest exporter in the world with £270 billion worth of exports in 2010..

http://www.economywatch.com/world_economy/united-kingdom/export-import.html

[endure]

Have you got a Thai gf/bf? If so, that's the way to go.

[endure]

Some serviced apartments offer lower prices if you sign up for longer periods. Be advised that if you sign up by the month rather than by the day you'll get separate leccy & water bills and will have to pay for each time your room is cleaned/sheets changed etc.

[moe666]

Cost depedant on size of the room and what is on offer. Refrigerator, TV, cable, cleaning and what ever they offer. If long term you will get a lower rate than monthly but you will pay for water and elect and depending on apt. fewer cleaning days unless you pay extra. The place I stayed in I didn't get the impression they where going to haggle over the prices they had set.

When I went into the hospital they did refund me 5 days of rent but this was on a daily rate at the time. Check out Smith residence pretty good value for the cost and the building and rooms are well maintained and kept very clean. The staff is friendly and helpful, many long term renters here farang and Thai.

When I had to come back to the states my girlfriend had to find another place to stay and I do not think she was doing a lot of haggling over the price of a room. She just basicly went looking for something in her price range 2,000baht to 2500baht a month always hoping for the big find of something out of this world for cheap

Edited July 15, 2011 by moe666

[hellodolly]

As has been pointed out earlier be prepared to pay the electricity and water. Some places pay the water but all places where you pay by the month charge for the electricity. It can run any where from 6 to 8 baht a unit. Not a lot of money if you don't use the air con. If you do it can run s high as 4,000 baht for a month but you would have to run it full time for that.

[CMSteve]

but then who will he get to negotiate prices with the Thai gf/bf?

Have you got a Thai gf/bf? If so, that's the way to go.

[fcgprg]

Britain has no export industry left to speak of, except its financial and consultancy services which depend on negotiation skills.

Only the 11th biggest exporter in the world with £270 billion worth of exports in 2010..

http://www.economywa...ort-import.html

Only part of the story.The UKs O.N.Statistics points out that the trade gap since the start of 2011 as reached record levels of more that 4GBP billion a month.Not a good sign.

[endure]

Britain has no export industry left to speak of, except its financial and consultancy services which depend on negotiation skills.

Only the 11th biggest exporter in the world with £270 billion worth of exports in 2010..

http://www.economywa...ort-import.html

Only part of the story.The UKs O.N.Statistics points out that the trade gap since the start of 2011 as reached record levels of more that 4GBP billion a month.Not a good sign.

I was refuting the statement "Britain has no export industry left to speak of"

[NancyL]

I can understand the OP's feeling. We're American,not British, but as Hubby sometimes says "we're WASPs, which means we believe in paying full retail price." Fortunately, I had a career in sales and marketing and my Fortune 100 company paid big bucks to put me thru several negotiating courses to try to overcome this deficiency.

We found we could "negotiate" lower prices on rental units here by doing our research, looking at many units and developing an understanding of the market forces driving pricing. We found we got some better offers, without even asking, when we went together and dressed well. I know some owners who would rather rent to a western married couple and not a single guy or a western guy with a Thai g/f. One Thai homeowner was asking 12,000 baht for a fairly large place and as we looked at it, she determined it was just the two of us, no other family members, no visitors, no pets, no vehicles. Suddently she lowered the price to 7,000 baht saying 12,000 baht was too much for just two people. We hadn't even asked. It was a family compound and she lived next door, so maybe she figured we'd be good, quiet neighbors.

We obtained a bettter price on our current unit by requesting a discount for a 2 year lease and saying we'd set up auto pay for the rent to go into the owner's account monthly. That got 3,000 baht/month knocked off the price.

Owners are looking for tenants who seem like they'll be long-term, stable residents who take care of their property. They're willing to discount their prices for that peace-of-mind.

[LadyHeather]

If you sign a one year contract it is easier to negotiate the price down. My advice is to look around and see the general price range for the area you want to live in. If you find a place you like then offer something from the lower end of the price range. But if you don't sign a long term contract its unlikely you will be able to obtain any kind of discount

Edited July 15, 2011 by LadyHeather

[OlafStapleton]

Owners are looking for tenants who seem like they'll be long-term, stable residents who take care of their property. They're willing to discount their prices for that peace-of-mind.

They double price because you have white skin, then discount because good tenant.

You end up only pay 20% more than Thai person.

Owner look for white person tenant because white person foolish with money, pay to much rent, pay to much deposit.

Edited July 15, 2011 by OlafStapleton

[NancyL]

Owners are looking for tenants who seem like they'll be long-term, stable residents who take care of their property. They're willing to discount their prices for that peace-of-mind.

They double price because you have white skin, then discount because good tenant.

You end up only pay 20% more than Thai person.

Owner look for white person tenant because white person foolish with money, pay to much rent, pay to much deposit.

In the particular case where the owner lowered the price without us asking, it was an advertised price on a sign, in Thai. We decided against renting that place for reasons unrelated to the price. When I last went by the house, it had six motorcycles and two cars parked outside. The place had four large bedrooms and I suspect they're filled with young Thai people now. I wonder who would take better care of the property and make better neighbors -- eight young Thai people or a retired western married couple?

[MangoAndCo]

Owners are looking for tenants who seem like they'll be long-term, stable residents who take care of their property. They're willing to discount their prices for that peace-of-mind.

They double price because you have white skin, then discount because good tenant.

You end up only pay 20% more than Thai person.

Owner look for white person tenant because white person foolish with money, pay to much rent, pay to much deposit.

In the particular case where the owner lowered the price without us asking, it was an advertised price on a sign, in Thai. We decided against renting that place for reasons unrelated to the price. When I last went by the house, it had six motorcycles and two cars parked outside. The place had four large bedrooms and I suspect they're filled with young Thai people now. I wonder who would take better care of the property and make better neighbors -- eight young Thai people or a retired western married couple?

I think this is an exception, most of the time "falang prices" are offered to falang.

But thanks for the tips: dress nicely, offer monthly payment by banktransfer (I thought houseowners preferred cash...)

So for a furnished 2 bedroom/bathroom house 10,000 baht p.m., I could haggle down to 7,000 for a 1-2 year contract without 'losing face'?

[NancyL]

Owners are looking for tenants who seem like they'll be long-term, stable residents who take care of their property. They're willing to discount their prices for that peace-of-mind.

They double price because you have white skin, then discount because good tenant.

You end up only pay 20% more than Thai person.

Owner look for white person tenant because white person foolish with money, pay to much rent, pay to much deposit.

In the particular case where the owner lowered the price without us asking, it was an advertised price on a sign, in Thai. We decided against renting that place for reasons unrelated to the price. When I last went by the house, it had six motorcycles and two cars parked outside. The place had four large bedrooms and I suspect they're filled with young Thai people now. I wonder who would take better care of the property and make better neighbors -- eight young Thai people or a retired western married couple?

I think this is an exception, most of the time "falang prices" are offered to falang.

But thanks for the tips: dress nicely, offer monthly payment by banktransfer (I thought houseowners preferred cash...)

So for a furnished 2 bedroom/bathroom house 10,000 baht p.m., I could haggle down to 7,000 for a 1-2 year contract without 'losing face'?

Well, yes owners do prefer cash, if they're around to receive the cash. We've had two owners, one who lived in Bangkok, the other who lived on the other side of town and spent much time out-of-town. With a bank transfer, they knew the money would be there and we couldn't play the "I tried to see you, but you weren't home" game.

The price for a 2 bedroom/2 bath house depends upon the condition of the property and the location. But, yes if the asking price is 10,000 baht, then you should be able to get it reduced to 7,000 baht for a 2 year contract if you figure out which form of payment is most desirable for the owner. it helps, too, if you're dealing directly with the owner and not thru an agent.

Oh and don't think of it as "haggling". You're not buying a cheap trinket at the Night Bazaar where haggling is considered part of the entertainment. You're negotiating a contract with a property owner. It's a major purchase for you and probably a major asset for the owner.

Edited July 15, 2011 by NancyL

[uptheos]

"but then who will he get to negotiate prices with the Thai gf/bf?"

In my experience over many years, I have found that a farang can often get a better deal by negotiating than a Thai. Maybe a Thai can translate, but make it clear who is doing the bargaining.

Landlords are not stupid (well some are) and they know they will get their rent on time, the place will be kept clean and it will be left in good condition.

Edited July 15, 2011 by uptheos

[OlafStapleton]

I think this is an exception, most of the time "falang prices" are offered to falang.

But thanks for the tips: dress nicely, offer monthly payment by banktransfer (I thought houseowners preferred cash...)

So for a furnished 2 bedroom/bathroom house 10,000 baht p.m., I could haggle down to 7,000 for a 1-2 year contract without 'losing face'?

2 bedroom 2 bathroom homes (furnished but cheap) are usually 5,000bht a month in CM (1 year contract 1 month deposit)

A unfurnished 3 bedroom house at end my road rents 4,000bht a month

You can get a 3 floor unfurnished 'shop front' in the town center for 6000bht

You can furnish a house for under 25kbht

Out of town (12km) I see 3 bedroom, 3 air-con, good garden, nice furnished bungalow with good furniture, asking 8,000bht

If you go to Hang Dong road, moobaan near SONY sign (white area 5km out) price is double.

Well, yes owners do prefer cash, if they're around to receive the cash. We've had two owners, one who lived in Bangkok, the other who lived on the other side of town and spent much time out-of-town. With a bank transfer, they knew the money would be there and we couldn't play the "I tried to see you, but you weren't home" game.

15% tax on rental income, nobody want pay, nobody want record of pay.

Edited July 15, 2011 by OlafStapleton

[OlafStapleton]

"but then who will he get to negotiate prices with the Thai gf/bf?"

In my experience over many years, I have found that a farang can often get a better deal by negotiating than a Thai. Maybe a Thai can translate, but make it clear who is doing the bargaining.

2 problem using Thai person

1: Not negotiate on price give Thai person much face, rich person not need negotiate

2: Thai person negotiate, Thai person take commission, not tell you. Gf ALWAYS take commission.

[uptheos]

"but then who will he get to negotiate prices with the Thai gf/bf?"

In my experience over many years, I have found that a farang can often get a better deal by negotiating than a Thai. Maybe a Thai can translate, but make it clear who is doing the bargaining.

2 problem using Thai person

1: Not negotiate on price give Thai person much face, rich person not need negotiate

2: Thai person negotiate, Thai person take commission, not tell you. Gf ALWAYS take commission.

The first house I rented here some years ago before building my own (prior was condo living) the landlord, a lovely lady but neither of us understood each other. She wanted 6,000 and I offered 4,000. I used a Thai to translate but ONLY translate. I told her I would pay her on time, keep the place clean, have the little garden tendered regularly and call her immediately if there was a problem. We settled on 4,500 and I was there a few years. We still keep in contact and she always calls me if her house is up for rent, asking if I can recommend someone......it's a lot more than 4,500 now but I still wish I had stayed instead of building..

[OlafStapleton]

sorry uptheos

I mean 3rd party Thai translate person to negotiate between renter/owner.

My mistake for bad English