If you are a landlord, you know that you cannot escape negotiations. You find yourself negotiating with not just tenants but also vendors, contractors, lenders, and even tax authorities. In fact, you cannot become a successful landlord if you are not a good negotiator. However, there Is no need to worry as negotiation is an art that can be learned and developed. You can also learn from the mistakes of other landlords in the past.
Chances of losing increase if you focus upon one aspect alone
If you are negotiating for a property and your sole focus is upon its prices, chances are that you will lose out on your negotiations. Make a list of demands and be prepared to lose nickels to earn dimes in return.
Complete rest is necessary to increase your focus during negotiations
Mental alacrity is the most important prerequisite for negotiations. If you have taken complete rest and feel fresh when approaching the negotiations table, you will be far superior to those on the opposite table who have been working overtime and are totally exhausted. One big mistake committed by many landlords is to worry about negotiations and exhaust their energies before actual negotiations even start.
Thinking about short term gains
When Google bought Semantics in 2001, not even the owners of this company had any ideas of the huge mistake they were committing. They were interested in immediate monetary gains. Google paid them lots of money that accounted for 1% of what Google was worth at that time. Now the same Semantics earns 99% of Google’s revenues in the form of Adsense. It is therefore a big mistake to think about short term gains from a deal. You should always keep in mind your long-term goals to maximize your profits.
Never say no bluntly
There are many landlords who prevent the possibility of closing a deal with a blunt no. It is only a two-letter word but No has tremendous negative power. Even if you want to say no to a proposal, make sure you wrap it inside a polite yes. This way you will not hurt the feelings of others and in fact, earn praise from your opponents. Control your emotions even if you are hurt during negotiations. Saying no will only hurt you more by closing the doors of the deal.
Do not focus upon a single outcome
This is a mistake that has cost dearly to many landlords. If you want a deal badly and you have tried everything in your hands and still it has eluded you, it is time to walk away and look for other deals. Remaining obsessed with a single outcome does not take you anywhere. If anything, it brings anxiety and worries in your mind. If you think you have already made your best offer and it is not working, it is time to walk away from the deal.
Do not try to be over smart
Many negotiations end prematurely because of the parties tries to be over smart. Never think of yourself as cleverer than those individuals sitting on the opposite table. Always treat them as equals even if you are richer or run a much bigger business. When Instagram sold the company to Google, it had only 11 employees and very little revenues. But this sale fetched the owners nearly $1 billion. Do you think they were smarter than Google? Google today earns much more form Instagram than it paid for acquiring it. The bitter truth is that the more you try to act smart, the higher your chances of losing in a deal.
Try to avoid these mistakes so that your negotiations are more enriching and rewarding.
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