House Rental Negotiation

Tenant
Your son/daughter has just completed MBA and has secured a job with a leading consulting firm
in Mumbai. He/she along with two friends (who also have secured a job in Mumbai) have decided
to rent a 3 BHK. All three of them have liked a 3 BHK flat in a multi storeyed gated society named
LD apartments. The flat is fully furnished and ready to move in. It is also at a convenient distance
from their respective offices. Your son/daughter has told his/her friends that you will negotiate
with the owner of the flat.
You(after discussion with your son/daughter and the two friends) have identified eight issues that
you want to discuss during the negotiation: start date, Car parking allocation, security deposit,
monthly rent, lease length, maintenance of furniture and electronic items, usage of society
amenities, and sublet policy. Your negotiation is not complete until you reach an agreement on all
eight of these issues.
As part of your negotiation preparation, you created a points schedule that reflects your references.
Your goal is to reach an agreement that provides you with as many points as possible. THE MORE
POINTS YOU EARN, THE BETTER YOUR AGREEMENT.
Should you and the landlord fail to reach an agreement, you will lease a flat in another society
named RN heights. The owner of the flat in RN heights has offered you a deal worth 7500 points.
This offer is NON NEGOTIABLE.
Start Date
The start date of the lease refers to the day that a new tenant begins paying rent. You want to start
the lease and move into your new house soon.
Start Date Options Points
A. Next week 1,400
B. After 15 days 1,350
C. Next Month 1,300
D. Two months from now 1,250
E. Three months from now 1,200

Car Parking allocation

The flat has two allotted car parks. Since neither of three have a car and nor are they planning to
buy one, you would want to save the rent for the parking space. The owner can lease the parking
spaces to someone else. Alternatively, you pay the rent and sub-let them to someone else. You
may earn some profit by subletting since you will get to know the going rates in society, as you
would be residing there.
Guaranteed Parking Allocation Options Points
A. Tenants pay for both the spaces with no subletting 100
B. Tenants pay for one with no subletting 300
C. Tenants pay for none. 500
D. Tenants pay for both and but can sublet one 700
E. Tenants pay for both and sublet both 900

Security Deposit
Landlords often require a security deposit to cover potential damage caused by the tenants. It is
returned once the tenant moves out, less any money required for repairs. You want a smaller
security deposit. Asking for a large security deposit signals less trust between the landlord and the
tenant.
Security Deposit Options Points
A. No security deposit 1,050
B. Two weeks rent 950
C. One month rent 850
D. Six weeks rent 750
E. Two months rent 650
Monthly Rent
Based on your research, a reasonable monthly rent for LD apartments is approximately INR 80000
per month. Paying a lower rent helps you save more.
Monthly Rent Options Points
A. INR 75000 per month 2,250
B. INR 80000 per month 1,875
C. INR 85000 per month 1,500
D. INR 90000 per month 1,125
E. INR 95000 per month 750

Lease Length
A lease can be of any length. Some leases are renewed monthly while others extend over several
years. You want to sign a long lease. You don’t want to shift soon. Anyways finding a good place
to live in Mumbai is difficult thing
Lease Length Options Points
A. Two years 1,750
B. Eighteen months 1,600
C. One year 1,450
D. Six months 1,300
E. Three months 1,150
Furniture and Electronics Maintenance Policy
Since the flat is fully furnished, you would want the owner to maintain everything as you do not
know how they were used so far.
Maintenance Policy Options Points
A. Owner to maintain all furniture and electronics 1,300
B. Owner to maintain small issues in electronics and all issues in furniture 1,025
C. Owner to maintain all furniture and no electronics 750
D. Owner to maintain small issues in furniture 475
E. Owner to maintain nothing 200

Society Amenities Policy

The society has gym, swimming pool, library, and club house. You would want to use these
facilities as the charges for these facilities outside in clubs are very high
Society Amenities Options Points
A. No amenities included 900
B. Swimming pool included 1,150
C. Swimming pool and gym included 1,400
D. Library, swimming pool, and gym included 1,650
E. Club house, Library, swimming pool, and gym included 1,900

Sublet Policy
You and your friends are sometimes sent on outbound projects. You may want to sublet your room
to other person, so that you can recover the room rent when you are not using.

Sublet Policy Options Points

A. No sublets allowed 550
B. Sublets allowed with two months notice 950
C. Sublets allowed with one month's notice 1,350
D. Sublets allowed with one week's notice 1,750
E. Sublets allowed with no advance notice 2,150