Algernon's cloak - getting it without rep loss (spoilers)

Is 60 in pickpocketing plenty to lift Algernon's cloak? I do want the cloak. So if the pickpocket fails I'll have to wax him. But I'd prefer not to take a rep hit as my party's rep is now at 6. Does killing Algernon result in rep loss?

If I Charm him and have him attack Tranzig, that would be another way, I guess...