Cutting Edge Negotiation Strategies for Property Managers

By
Steven Sessions

Are you a good negotiator? That is the $10,000 question! Even among very experienced property managers, most negotiate on impulse or intuitively. They do what feels right, or adhere to a few rules of thumb they learned by trial-and-error, or from a mentor early in their career. Very few negotiate strategically and take the time to study the process and implement best practices. As a result, many successful property managers fail to achieve the most they can in negotiations.

Think about these Five Strategies, incorporate them into your daily practice and head to the bank:

• BE PREPARED – Successful negotiation begins with careful preparation. Resist the urge to commence a negotiation until you have gathered, reviewed, and pondered all substantive and strategic information. Have you thoroughly prepared a checklist of questions to ask and issues to address? Do you know what you are willing to offer and concede? Have you developed some options if the negotiation stalls?
  
• FACE-TO-FACE – Clearly understand that telephone negotiations produce a different negotiation dynamic than in-person negotiations. They require a different approach. Telephone negotiations make it easier to say no than to reject in a belly-to-belly, eye-to-eye encounter! It's difficult to observe body language, facial expressions and behavioral cues at the end of a cell phone. In addition, phone negotiations often take less time, lead to less information exchange and make it more difficult to establish a good relationship.
  
• OVERCOME FEAR –Many property managers do not like to negotiate and often go to great lengths to avoid them. At the very first sign of fear, you have to diagnose and work through it. Effective planning, research, analysis, and role-playing can help you conquer this fear. James Bell wrote: “Fear is an insidious virus. Given a breeding place in our mind, it will permeate the whole body of our work. It will eat away our spirit and block the forward path of our endeavors. Fear is the greatest enemy of progress.”
  
• EVALUATE YOUR PERSONAL STYLE - Take a test! Ask a few colleagues to evaluate your personal style. Take the time to identify your behavioral profile, and capitalize on your strengths. Then find out your counterpart's style. Increase your appreciation of different profiles. Contact others with whom they have negotiated. Remember, past experience is a good predictor of future action.
  
• BE HONORABLE – This is the keystone of a successful negotiator! There is no place for abuse, insults, or threats of any kind in a negotiation at work, at home, or at play. Many times people reject what we say, not because they disagree with it, but because they are reacting to an offensive attitude that we are projecting. Avoid verbal sparring. Reputation, morality, trust and credibility are the key factors in all negotiations. Don't forget them. Ethics make a bottom-line difference.

As property managers, we can provide so much value to our owners and tenants as we learn and implement the strategies and techniques of effective negotiation. One thing I know beyond a shadow of a doubt: There is always more to learn about negotiation.

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