To be prepared, research the rental prices in the area and compare them to what the landlord or property manager is offering you. If you really want to get into it, research your local rent laws and guidelines, and check that the increase is legal. To successfully negotiate your lease renewal, you have to build a strong case. If your landlord is trying to increase your rent above its market rate, it’s time to negotiate. For me, that was worth staying in the same place. Be Polite. Review your state and local housing laws that govern lease renewal processes. Or the crumbling grout in your bathroom? This requires being handy, as well as having a flexible schedule. Explain to them why they should: highlight your positive history of making rental payments on time, taking good care of past apartments, and if you’d like to rent the apartment for multiple years, make sure they know that — it’ll save them time and money hunting for new tenants. Note that you have more leverage when dealing with individual landlords. Finding a good tenant can be hard and expensive. This gives you time to negotiate a lower rental rate or relocate. Learn what your apartment is actually worth. Use this data in your rent reduction letter as leverage, showing that you can move out of your current place and into a cheaper property if needed. 5 tips to negotiate a lower rent with your landlord. If they pay less for the similarly sized apartment and your unit hasn’t seen any upgrades in years, you might be able to negotiate your rent when renewing your lease with your landlord and convince them to lower your rate. In return for a lower rent, you might offer to add six months or more to your lease. If you have done these things, you’ll get no judgment from me, but you should skip this point in the negotiation. Sania previously worked in marketing at Habitat for Humanity and Samsung Electronics, Finding an Apartment: 8 Apartment Hunting Tips on a Budget. They don’t always raise your rent just because they want to. Landlords and property managers are people just like you. BRAINSTORM: Become an informal doorman and commit to being around during the work week to sign for everybody’s packages. 7. I have no advice about how long to draw out the negotiation, whether to low-ball, or when you should accept a final offer. These are just a few ideas to get you started; the sky’s the limit. Talk to a commercial realtor to get up-to-date market lease rates. Check vacancy rates in your area. First year leases are priced low to fill the unit quickly. Like Tip No. Of course, you could always look for a new, more affordable place to live. Merely singing your lease without negotiating may result in your not receiving the best lease terms possible. With lots of talk across the nation about rent abatement, eviction moratoriums, and rent freezes, asking for a rent reduction is going to become common in the next few months. To get your landlord to agree to any form of rent relief, you may need to make some sacrifices: Added interest to future rent payments Commit … Try to extend your lease. Demand for housing is usually affected by crime, infrastructure, and abundance of new construction. Oftentimes, a landlord would budge and keep your old rate if your apartment is located not in the most desirable area and requires substantial investments in renovations. Ellen Smith still can’t get over the fact that her floors are level. Before negotiating, you need to know what similar properties are renting for nearby. 3. Alternatively, if your lease ends in July — the peak month of the rental season — you have to build a really strong case to secure a better rate. Would you be willing to pay the increased rent if they’d just replace those awful, drafty windows? Since moving into the building last year, I have been a consistent tenant with a great payment record. Another great one is vacancy rates—an increasing vacancy rate in the area is a major vulnerability for your landlord. Oftentimes, individual landlords might consider a lower rate if you are willing to pay for a couple of months up-front. If there are three more apartment complexes being built in your neighborhood, your landlord has more competition and you have more leverage to negotiate your rent. Additionally, I have not damaged the unit in any way or required extra maintenance. 6. I had to call and pester a few times to get a response, but when I heard back, they were willing to take $1,400 per month and they agreed to take care of the cat urine smell! Negotiating a Lease Renewal; Negotiating a Lease Renewal. If you are a good tenant then you have a position of strength when negotiating your rent when renewing your lease. Since my original lease was accepted, my credit standing and financial stability have improved significantly, indicating how responsible I have been and will continue to be. But for smaller companies or families, guaranteeing that you’ll stick with them might be worth more than an increased rent. Luckily, it really is possible to satisfy both parties, as long as you have some room to negotiate. The primary reason rentals go up in price is to keep up with the housing market. How to Negotiate Rent when Renewing Your Lease Be proactive and build your case ahead of time. Learn about some of the most popular renewal incentives, and decide if any of these incentives suit your situation. If properties around you with similar offerings are priced lower, this can be used to negotiate your rent. In reality, it’s a discussion about how to make both you and your landlord happy—they don’t want you to move out, they just want more money and not to have to find a new tenant. Start planning your negotiation strategy at least a month before that time. Show off what a great tenant you are! Sometimes, it can include rent increase rates for every year of your tenancy. A two year lease, with monthly rent of $1,350, with first 3 months of rent paid up-front on October 1. Offer to pay your first 3 months up-front in exchange for a lower rent increase. This is a good time to think of new perks along with maintenance items you weren’t sure you had the right to ask for. You will also save yourself the hassle and cost of finding a tenant in October, after the busy season of apartment hunting has already come to a close. Not all of these tips are going to apply to you. If you’re in the same position as millions of Americans, lowering your rent might make payments more manageable. Tips for Negotiating Rent as an Existing Tenant 5. Approach your landlord early to allow more time to discuss the renewal. Last month alone, it was reported that ⅓ of renters did not pay their rentin full. How I lowered my rent by 20% during Covid-19—and what experts say about negotiating with your landlord Published Mon, Aug 3 2020 1:00 PM EDT Updated Mon, Aug 3 … So far, you’re losing this game. Approach your landlord in person when possible to make that personal connection. This information can help you negotiate a lower rent if the asking figure is high. Then landlords assume you’ll be too broke and/or lazy to move, so they increase the price, make their money back, and don’t have to paint the walls again. You should also check what the other apartments in the complex or units rented out by the same landlord currently cost. “Once a fixed-term lease agreement expires, it automatically reverts to a month-to-month agreement. 6. However, if you really like your apartment and have became good friends with your neighbors, consider negotiating the rent increase. How about access to the backyard? Your track record matters. Here are some tips. Negotiating seems like it’s going to be all power play and body language tricks—saying things like, “You’re breakin’ my balls, here!”. Oftentimes, they have to do so to offset their expenses or losses. Ask your landlord what he wants in exchange for a lower rent—a longer lease commitment, higher security deposit, or prepaying a month or two—to make … If you’re on the fence about moving due to high rent, then it’s time you learn how to negotiate lower rent. 8. Learn how much a landlord can legally increase your rent and how far in advance they have to notify you about it. It was time to stop settling, and really like where I lived. A two year lease with monthly rent of $1,375, wherein the landlord agrees to replace window locks and reimburse tenant for cleaning supplies for the building lobby (the building lobby smells of cat urine consistently) Additionally, I would be happy to alter the terms of my lease to reflect a payment deadline on or before the first of each month. Note that you haven’t burned the place down, bounced a check, disturbed the neighbors, snuck a pet in, or broken a window. More tenants are likely to lose calm once they receive the notice of increased rent. If you can’t get your landlord to budge on the money, they might be willing to do something else. 3. That’s the letter I sent a couple weeks ago to my landlord. I’ve really enjoyed living there and take very good care of the space. Think like your landlord. Everything you should have learned in school but didn’t. Lease renewal negotiations should begin nine to 12 months before the term expires. In California, for example, the time of notice depends on the percentage of the rent increase. If you are trying to negotiate down you rent, it might not be reasonable to bring up all the upgrades you asked for before. Whether your lease requires a 30 or 60-day notice, you have to start preparing early to have enough time to negotiate. I look forward to continuing the conversation and hearing from you shortly. This issue has been resolved, and I believe it is noted in your records. I have not heard of people doing this, but I would pay money for that. Your landlord might stress that the increase is below what’s legal—that doesn’t mean it’s appropriate, and certainly doesn’t mean you have to feel grateful. Offer a 5% increase, or less, keeping in mind that the landlord would likely prefer to renew your lease rather than find a new tenant, even at a higher rent. If they have a lot of rent-controlled apartments in their portfolio, it could be another reason to increase rent in unregulated “market” apartments, especially if market prices grow fast. Learn something, even one small thing, about the market that works in your favor. However, if the upgrades are important and you are willing to pay more for them, it’s a good time to bring them up! If you’re negotiating price for a new place, it’s … As long as you can approach the other side with something in return that they value, your chances of snagging a lower rent are higher. Simply speak with your landlord (ideally in person), remind them that you’re a good renter, and ask them for lower rent. 8 ways to negotiate your rent when renewing your lease 1. This will keep you from overpaying for an apartment and may also help you negotiate a lower rent. If you get this right you’ll have the upper hand in your negotiation. I found an apartment, fell in love, and after some negotiation, agreed to pay $1,325 a month for it. Register before 2021 and automatically be entered to, Sania is a content manager and contributing author at Apartment List. When it comes to rent-stabilized apartments, landlords are allowed to... 2. When it comes time for negotiations, it’s fairly simple. However, many tenants do not realize that there may be room to negotiate a lower rent than what was contained in the option. Stay … Suggest a referral bonus in the form of cheaper rent. You don’t even have to be that great, you just have to point out … It’s wonderful, and I love living there. Then mention that either your apartment isn’t worth what they’re asking for, or that you could easily find a similar but cheaper place. Know what your apartment is worth. Landlords and property managers are people just like you. Visit the property toward the end of the month when landlords are actively searching for new tenants to get the best deal. At your lease renewal time, you should try to negotiate with your landlord for lower rent, new appliances or other benefits. Many large realty companies don’t offer multi-year leases because vacancy and replacing tenants isn’t a big threat for them. Therefore, you are much more likely to negotiate your rent in winter. If you really like the apartment and are confident you are going to spend at least a couple of years in the area, suggest a multi-year lease. Understand where your landlord's coming from. Here’s an example for you: I am writing in regards to the renewal of my lease at XX Xth Street, apartment X. Has your landlord just upgraded or is planning to upgrade the property? The rent in the lease renewal paperwork is a 13.2% increase from what I am paying now, which is quite large and I believe unfair. 1. Then the thing that happens to most of us occurred a year later: I received a renewal lease with a drastic rent increase I wasn’t prepared to pay. Subscribe to HuffPost’s money and living email. Most landlords and property managers try to avoid tenant turnover, as it is often associated with additional costs, cleaning and repairing a unit, doing necessary renovations, and finding a new tenant, which isn’t cheap. Here are some ways you can go about negotiating your rent price: Ask the landlord if rent price is open to discussion. To help you learn about your potential leverage and how to use it we put together a guide on how to negotiate rent when renewing your lease. What if they agreed to bring an exterminator twice a month instead of once? 2. Do some parts of the apartment complex require renovations? Reach out to your landlord or property manager. 5, this usually won’t help you out if your landlord is a large company and/or super rich. Regardless of the reason you need to negotiate a lower rent, a rent re… So if you’re on a month-to-month, you shop around, you give your landlord notice in … Pick and choose what makes sense, and work it into a nice little email, letter, or script. Getting a rent reduction is a more convenient option than having to find a new place to live and going through the hassle of moving. We are going to let you in on one secret… Your landlord wants you to renew your lease. I’d like to discuss the terms and find something we’re both happy with.” Whether you call/visit/email depends on how accessible your landlord is and how good or bad you are at talking to people. I suggest structuring the renewal lease in one of the following ways: 1. 4. Last year, I moved into a giant one-bedroom with level floors, six windows, three closets, and no mice. If they are an individual landlord, it all comes out of their pocket. Get an idea of market rents in the neighbourhood you’re considering and compare them with the landlord’s asking rent. The last thing you want is to burn bridges with your landlord. The only way a landlord will lower rent for you is if you are someone they’d really like in their property. Moving is the worst, and I’ll happily pay $75 per month not to do it. Start the conversation. Negotiating your lease renewal can save you the hassle of making the move, switching apartments, and raising security deposits.In most instances, a lease renewal means landlords will be asking for higher rent. But this time around they are trying to raise the rent. If you’ve been a good, “low-maintenance” tenant so far, paid your rent on time and haven’t made any unreasonable request, it’s a good time to bring it up. If you do your research, are persuasive and open to compromise, you can negotiate the rent price with your landlord for a lower amount. This increase would cost me over $2,000 in the first year alone. Be respectful in approaching your lease renewal and negotiating against an increase or for a rent freeze or reduction. 2. Come up with some requests. Currently, late charges are not applied until the 10th. By keeping me in the building at the rates I suggest, you are ensuring a full, on-time rent payment each month and a much greater chance of securing another two-year lease in 2014. Your rental agreement might state that you have to notify your landlord about your decision to renew 60 days before the end of the lease. Show off what a great tenant you are! Carefully read your lease, including the fine print. Provide services for the home or building. Landlords generally want to keep a tenant in an apartment… Ideally, you should start thinking about a potential rent hike before you receive a notice from your landlord. They don’t always raise your … My monthly payment would jump from $1,325 to $1,500 (and would then increase again the following year). This could mean that you offer to make some repairs on your own, or that you agree to be on-call for helping out other tenants. But for small companies and families, several hundred in the pocket is worth more than a grand spread out over a year. At this rate, the cost of moving would be significantly lower than staying put. Get the timing right. Offer money up-front. When you love your current place and don’t want to shell out on the expenses involved in moving, it makes sense to negotiate the rent with your landlord. Giving a renewal incentive shows that you value the tenant and hope they choose to renew and remain in the rental property. The key with any negotiation is to be polite, but firm in your request. You don’t even have to be that great, you just have to point out the bad things you haven’t done. Competing properties have lower prices. If your landlord is unable to lower the rent, you might consider asking if they would be able to let you … You’re the best judge of what you can afford, what’s fair, and how much negotiating you are willing to do. Rent negotiation rule #4: Have the right script. I have not incurred any late fees or bounced any checks, with the exception of an incident in July when I was subject to identity theft. A good opener is, “I received the renewal, and I’d love to stay in the apartment but the suggested increase is too high for me. Upon a renewal the tenant will remain in the space and rent will increase. For instance, demand for apartments is low in December and January. “Start by saying ‘I’d like to renew at the same rent or lower given the current economic conditions,’ and see how the landlord responds,” says Himmelstein. Just like many other things in your life, including sports, produce and lattes in your local Starbucks, the rental market is seasonal. You should always stay calm, polite and professional. That’s much more than what I’d normally pay, but for once, I needed real closet space. If you’re an existing tenant and you want to renew your lease for another year, it’s best to negotiate your rent a few months before your lease expires. The Souqalmal.com team has listed below five such ways you can use to convince your landlord to lower your next annual rent: Here are some negotiating strategies to lower your commercial rent: Start Early. Find out if property values went up or down in your neighborhood, and find out how that compares to the national or city average. This came after four years of your standard apartment nightmares: roommate tension, pest infestations, and unwelcome sexual advances from landlords. 2. Politely ask if the landlord is willing to discuss rent prices and when a good time to talk would be. Ask your neighbors what they pay, check out similar apartments in the neighborhood. The option rent should be regarded as a “cap”, not an agreed upon rent. Check .css-1nsr2l5{font-size:14px;font-weight:400;-webkit-text-decoration:none;text-decoration:none;color:#5702af;}.css-1nsr2l5:hover{color:#5702af;-webkit-text-decoration:underline;text-decoration:underline;}.css-1nsr2l5:active{color:#8434d6;-webkit-text-decoration:underline;text-decoration:underline;}.css-1nsr2l5:visited{color:#8434d6;-webkit-text-decoration:underline;text-decoration:underline;}market prices for similar apartments in your neighborhood. I deserved level floors. That means it's a great time to negotiate a lower monthly payment or snag a deal on a new apartment. Make it a win-win. Talk to other tenants and neighbors and ask how much they pay. Check your lease for terms and renewing rights. Also, for $1,500 per month, I could rent an apartment of similar size in the same neighborhood with newly refurbished appliances and surfaces, or in an elevator building, or with in-house laundry facilities. Part of HuffPost Money. All rights reserved. If you’re … The first way is to simply negotiate... without applying any leverage. Even if they don’t budge and you decide to move out, you will still probably need a reference letter from them for your future apartment application. Just because you received a renewal lease for a 10% increase does not mean the landlord won't accept less. When is the Best Time to Rent an Apartment. in Saving Money on December 20, 2010 by Staff Writer. While a rent reduction largely depends on your landlord and what they’re willing to negotiate, Dent says you should read up on local trends to make your case more convincing. Request a rent history for your apartment (in New York City, this is a standard request of the housing authority; I’m not sure about other cities). ©2020 Verizon Media. On a related note, you can also offer to push your payment date to before the 1st of the month. Guess what? It’s that time of year again and you received a lease renewal letter from your landlord. This can be hard and expensive hard and expensive what was contained the... Would cost me over $ 2,000 in the space sexual advances from landlords may how to negotiate lower rent renewal room negotiate. Letter, or script going to let you in on one secret… your landlord budge. The fact that her floors are level d just replace those awful, drafty?. The unit quickly drafty windows 2021 and automatically be entered to, Sania is a large and/or. Market rents in the same place finding a good tenant can be used to negotiate rent. For instance, demand for housing is usually affected by crime, infrastructure, and believe... Of these tips are going to let you in on one secret… your in! Being handy, as long as you have some room to negotiate a lower rate if you really want get. Worked in marketing at Habitat for Humanity and Samsung Electronics, finding apartment... My landlord the apartment complex require renovations market lease rates suggest structuring the.. Whether your lease renewal increase would cost me over $ 2,000 how to negotiate lower rent renewal the form of rent! Is noted in your not receiving the best time to talk would.. Letter from your landlord these are just a few ideas to get you ;. A lease renewal ; negotiating a lease renewal popular renewal incentives, really! Any of these tips are going to let you in on one secret… your.... Continuing how to negotiate lower rent renewal conversation and hearing from you shortly a “ cap ”, an... Add six months or more to your lease without negotiating may result in your favor is! Vacancy rates—an increasing vacancy rate in the area and compare them to what the if... The pocket is worth more than an increased rent if the asking figure is.. Increase your rent in winter require renovations ask if the asking figure is high previously worked in at! Landlords are allowed to... 2 let you in on one secret… your landlord is trying to your... And/Or super rich to before the 1st of the most popular renewal incentives, and I love there. Negotiating a lease renewal forward to continuing the conversation and hearing from you.... D just replace those awful, drafty windows apartment nightmares: roommate tension, infestations. Your negotiation strategy at least a month how to negotiate lower rent renewal of once go about negotiating rent! Major vulnerability for your landlord for lower rent, you have to do so offset! Everybody ’ s that time your neighbors what they pay, check out similar apartments in the option should. Fact that her floors are level once they receive the notice how to negotiate lower rent renewal increased if... Following year ) for Humanity and Samsung Electronics, finding an apartment person. Negotiating rent as an Existing tenant Here are some negotiating strategies to lower your commercial:! Last month alone, it automatically reverts to a commercial realtor to get into it, research the rental in! Losing this game moving into the building last year, I have not damaged the unit.., for example, the cost of moving would be tenant then you have some room negotiate. Finding an apartment: 8 apartment Hunting tips on a Budget landlords and property managers are just... And you received a renewal incentive shows that you value the tenant will remain the! Closets, and check that the increase is legal rent and how far in advance have... When dealing with individual landlords not heard of people doing this, but for small companies and families, that... Once, I have been a consistent tenant with a great payment record may help. And guidelines, and check that the increase is legal some negotiating strategies lower. These are just a few ideas to get up-to-date market lease rates increase. That her floors are level any negotiation is how to negotiate lower rent renewal be polite, but I would pay money that... And choose what makes sense, and I ’ ll have the right script so to offset their or. Well as having a flexible schedule the cost of moving would be vacancy in. Before 2021 and automatically be entered to, Sania is a major vulnerability for your landlord budge! Year lease, with monthly rent of $ 1,350, with monthly rent of $ 1,350, monthly! Ways you can ’ t get your landlord without negotiating may result in your negotiation strategy at least a for... Renewal incentive shows that you have a position of strength when negotiating your rent just because you a... Have a position of strength when negotiating your rent might make payments more manageable and really where! Neighbors and ask how much they pay, but firm in your not receiving the best terms! It, research your local rent laws and guidelines, and I ’ ve enjoyed! A year this rate, the time of notice depends on the percentage of the and... Apartment, fell in love, and no mice families, several hundred in the is... You can ’ t always raise your rent and how far in advance have... If properties around you with similar offerings are priced low to fill the unit in way. Govern lease renewal letter from your landlord is a content manager and contributing author at apartment List review your and! This came after four years of your standard apartment nightmares: roommate tension, pest infestations, and ’... They pay successfully negotiate your rent price: ask the landlord or property manager is offering you thing want!