BUSM 5140 - Spring 2023 Negotiation simulation 2 - "Integrative" - "personal interest" but deal must be beneficial for all parties to work! This past Spring, two sisters (twins) from Edmonton, Alberta graduated with a Bachelor's degree in Business Administration (sister 1) and Civil Engineering (sister 2) from the University of Alberta. Last year they visited a number of BC universities including University of Victoria (UVIC) and toured the campus for a few hours. They fell in love with the weather and scenery in Victoria. Commencing in September both sisters have been accepted at the University of Victoria (UVIC), BC in the MBA program. The sisters are excited, a little scared but looking forward to the academic year. This will be their first time living away from home. They do not want to live in residence and have decided to live off campus in a single family rented home if available and affordable. From their home in Edmonton, the sisters did some research on-line and confirmed that rental properties are available in Victoria. They are pretty expensive. They will need to find a couple of suitable roommates to make living off campus affordable. The sisters. seeking roommates, posted an advertisement on the UVIC shared accommodation website. The received a number of replies but found two of particular interest. They checked their references on-line and by telephone and decided on 2 potential roommates. They appeared to be serious students and had good references. They contacted the students and all agreed, due to pandemic considerations, to meet online ASAP to discuss details. A time to meet was agreed upon. They met online and all are prepared to move forward and share accommodation in Victoria, subject to an actual satisfactory lease arrangement. Prior to meeting, online, the sisters did explore a few rental properties on-line. Prices ranged from $2400/month to $3500/month plus security deposit and utilities. Two looked especially good. One had a hot tub! Both could be available September 1 and were close to public transportation. Both would consider a minimum eight-month lease term for students. They were getting increasingly excited. They all agreed to meet and discuss on Tuesday, February 14. Additional detail - twin sisters 1 and 2 Your parents do not want you living off campus. They are fearful you will fall into a bad crowd. You have convinced them you will be fine but they are worried. In addition, they do not have a lot of money and have given you a strict budget for rental housing of $900/month including utilities. They understand you will have to pay a security deposit upfront. other: - after some discussion with parents and research on-line, you have discovered utilities will likely include electricity, gas, water and internet (Wi-Fi) - potential pet deposit and a security deposit (usually is the equivalent of 1 month's rent and is refundable after lease expires if no damage to premises) - sister 2 has a small one-legged dog (Chihauhau) Her parents have offered to look after while sister 2 is away - she wants to bring it with her!! - friendly but can nip if startled! - sisters will use public transit - both are OK cooks but intend to eat at school Detail - prospective roommate 2 Yuxuan, is a student from Bejing, China. She completed her BBA at Simon Fraser University in 2016. She returned home to China and worked in her family's business (import/export clothing and accessories). She has decided to return to Canada and complete her MBA. She is a very good student. other- - Yuxuan does not have a housing budget but is a prudent and experienced business person. Her parents have taught her the value of frugality - she needs roommates she can trust - she intends to purchase a new car in Canada and will drive to and from school - Yuxuan is an accomplished pianist and has played for the Vancouver Symphony Orchestra. - she is a private person and will not entertain sharing a room Detail - prospective roommate 4 Hartej is from Surrey, BC. He is confined to a wheelchair after being involved in a serious car accident in 2001. He is 29 years old and has a Bachelor's degree from Kwantlen Polytechnic University in Horticulture. He is friendly and outgoing and other than requiring wheel chair access is very self sufficient. He is an excellent cook. He applied for and received a $8500 scholarship to attend UVIC. He is an accomplished violinist and will study music at UVIV for the next 3 years. other: - he has a strict budget being on a scholarship - his budgeted housing allowance is $560/month - he has a service dog - Sally - a female Golden retriever - this is why he needs access to a yard - he receives an allowance to fund costs associated with his service dog - Hartej met Yuxuan a few years ago through mutual friends and from playing for the Vancouver Orchestra from time to time - he intends to use public transit to go to and from school Stage one: LEASEE"S/renters house and finance preliminary rules The roommates need to agree on how to best share expenses and create some specific rules to govern behavior in the house. A meeting will be convened ASAP Convene to make some rules! Consider the following: - rent - utilities - gas, electricity, water, garbage, snow removal (if necessary) - individual living space - furniture - shared usage space - restrictions? - security deposit - common space furniture, dishes, cooking utensils - Wi-Fi, internet - pet allowance - garage and parking - cleaning and chores Create a PRELIMINARY renters agreement - all must sign! Stage 2: Having created an agreement to live together the sisters have presented some rental opportunities in Victoria. You have 1 rental possibility that seems to meet everyone's needs. It is a little expensive but really nice! Next to a park, hot tub and a large yard makes it more attractive. It is 4 miles from campus but close to a bus stop with service directly to UVIC. Considering your preliminary agreement and in order to apply for the following house rental YOU MUST re-evaluate and negotiate specific new terms to go forward. Rental terms are as follows: "Unfurnished detached home in quiet residential area, near parks, recreation and transportation with complete wheel chair access. Built in 1971 home sits on a half acre fenced and private lot. Walking distance to beach. Has a I car attached garage with remote control and a single car port. House has 2200 square feet of living space which includes 3 bedrooms, 2 full baths (one off of master suite) and a den. Includes fully functional hot tub and gas barbeque on large concrete patio. - monthly rent = $2550 - refundable security deposit = 1 month's rent - refundable pet security deposit $1200 - utilities (estimated): - gas $150/month, electricity $190/month - water $90/month, garbage and recycling $50 every 2 weeks Convene a second meeting and make a new renter agreement fair to all parties and designed specifically for the property described above, that you all want to rent. (I will review and if individual renter needs are not essentially met in your deal, that student will lose marks!). - consider all elements/terms of rental, including cost of internet and Wi-Fi. Allocate living space and determine rental cost for each roommate. Prepare to make a "realistic offer" to landlord. MAKE IT WORK - TIME IS SHORT. Stage 3 Convene a meeting with the landlord and all your team members and negotiate a lease. Lease must meet the needs of all parties including landlord. Deal may require 2 or more meetings. Send me a copy of terms online to me via email Stage 4 when posted, answer individually assignment questions for LEASEE or LANDLORD,on one.kpu and subm