You Have Been Relocated By Your Employer To An Assignment

You Have Been Relocated By Your Employer To An Assignme

You have been relocated by your employer to a new city for an assignment that will probably last for two years. You do not want to sell your home – a four-bedroom, two-bath Tudor – so you decide to rent it. A friend of yours in real estate has a potential lessee for you to meet. He is a 30-something single doctor beginning a two-year residency in the local hospital. You have some concerns about a single guy living in your house and taking care of it the way you would, but you agree to meet with him and possibly negotiate a lease.

In this scenario, the involved parties include yourself as the property owner and the prospective tenant, the young doctor. Your primary goal is to find a trustworthy tenant who will care for your home while you are away and fulfill lease obligations responsibly. The doctor's goal is to secure a suitable rental agreement that includes favorable terms, allowing him to live in a comfortable residence during his residency while possibly fitting into his financial and logistical needs.

Their dependency revolves around a mutual need: you depend on the tenant to maintain your property properly and pay rent punctually; the tenant depends on securing a reliable residence without long-term commitments and with affordable rental terms. The motivations are driven by desire for security and trust from your side, and practicality and affordability from the tenant's perspective.

In this rental negotiation, four options could be proposed to satisfy both parties’ goals:

1. Standard Lease Agreement with a Security Deposit: This approach involves drafting a lease that stipulates regular rent payments, security deposit, maintenance responsibilities, and house rules. It protects you from potential damage and non-payment while giving the tenant clear expectations.
2. Probationary Period with Regular Inspections: Establish a trial period at the beginning of the lease, with periodic inspections to ensure the property’s upkeep. This reassures you concerning the tenant’s care and provides an opportunity for feedback.
3. Appointing a Property Manager or House Sitter: To mitigate concerns about a single guy living alone, you may include a clause that allows periodic check-ins or appoint a trusted property manager to oversee care, providing peace of mind.
4. Flexible Lease Terms with Mandatory References: Offer a lease with flexible start and end dates but require references from previous landlords or employers. This helps confirm the tenant's reliability and mitigates risk.

An advantageous bargaining behavior for you in this scenario is demonstrating active listening combined with assertive communication. A skilled negotiator adopts a collaborative approach, aiming to find mutually beneficial solutions that foster trust and transparency. By openly discussing your concerns about property care and the tenant’s needs, you build rapport, encouraging honesty and cooperative problem-solving. This approach can include clarifying expectations, setting boundaries, and emphasizing shared goals of a smooth tenancy.

Collaboration is the most appropriate bargaining style here because it aligns with your goal of protecting your property while fostering a trustworthy relationship. Collaborative bargaining focuses on mutual gains—developing options that satisfy both parties’ interests. The primary goals include ensuring the tenant’s comfort and stability during their residency and maintaining the property's condition without disputes or conflict.

Throughout this negotiation, some participants may have entered with cognitive biases. For example, your concern about a single tenant living alone may stem from a stereotype or risk aversion bias—overestimating potential issues based on partial information. Conversely, the tenant might display optimism bias, underestimating possible property damage or lease violations. Recognizing these biases is crucial as they can influence perceptions and hinder objective decision-making. Addressing biases involves open communication and reliance on factual information, such as references or property records, rather than assumptions.

Conclusion

This rental negotiation involves balancing trust, safety, and mutual benefit. By understanding the parties' goals and dependencies and employing collaborative bargaining strategies, you can develop an agreement that meets everyone’s needs. Recognizing cognitive biases further enhances fair and effective decision-making. Ultimately, fostering open dialogue and transparency ensures a positive tenancy experience that safeguards your property while accommodating the tenant’s requirements.

References

• Fisher, R., Ury, W., & Patton, B. (2011). Getting to Yes: Negotiating Agreement Without Giving In. Penguin Books.
• Lewicki, R. J., Barry, B., & Saunders, D. M. (2015). Negotiation. McGraw-Hill Education.
• Thompson, L. (2013). The Mind and Heart of the Negotiator. Pearson.
• Shell, G. R. (2006). Negotiation: Theory and Practice. Pearson Education.
• Bazerman, M. H., & Moore, D. A. (2013). Judgment in Managerial Decision Making. Wiley.
• Neale, M. A., & Bazerman, M. H. (1991). Cognition and Rationality in Negotiation. The Organizational Behavior Series.
• Nickerson, R. S. (1998). Confirmation Bias: A Ubiquitous Phenomenon in Many Guises. Review of General Psychology.
• Schwarz, N. (2012). Feelings and Heuristics in Negotiation. Cambridge University Press.
• Thaler, R., & Sunstein, C. (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness. Yale University Press.
• Van Boven, L., & Loewenstein, G. (2003). Social Comparison and the Pursuit of Happiness. Journal of Personality and Social Psychology.