My favorite question: Why won’t the landlord reduce the rent? The building has been sitting there empty for years!
If I had a nickel for every time I have been asked this question, I’d be rich by now. Time after time, people ask me: why won’t the landlord reduce the rent of an empty building? It would stand to reason that an empty space would be a less expensive space, but that’s usually not the case.
Some landlords won’t reduce the rent for a simple reason: they want what they want, and they’re waiting for the right deal. Others have a mortgage on the property and therefore, have the bank telling them the minimum rent they can charge. Some buildings have changed hands multiple times since 2008, and the new owner has enough cash to wait for the right deal. In other cases, the bank took the building over in a foreclosure, and they’re still holding the title.
Believe it or not, some landlords will even take offense if an offer is too low. You have to strike the right balance when putting an offer in a property—and that’s where a good broker comes in. Good brokers understand the market, understand the comps in the area, and can help you put together an offer that makes sense, both for you and for the seller.
Photo Credit: “Graph Of Crisis” by ddpavumba Source: freedigitalphotos.net