Is it Appropriate to Negotiate Your Rent?

Whether it’s time to renew your current lease or you just want to make the most of the current downturn in the market. There’s nothing wrong with negotiating your rent. Just make sure you’re prepared. Here are some things to consider before sitting down with your landlord to discuss a new rental rate.

– Know the Market:

2020 has been rough. The pandemic has been challenging for everybody, and the housing market has suffered as well. The market isn’t going to improve drastically any time soon. In the meantime, landlords are finding it difficult to place new tenants in units that are now vacant due to economic hardship or, worse, casualty to the coronavirus.

Add to that the growing complexities of diminishing demand and the challenges around holding property tours and getting signatures on lease documents and you could have a pretty compelling argument that any rent paid (even at a lower rate) is better than having to restart the leasing process with a new tenant. Or, worse still, no rent at all.

– Rent Stabilized or Not:

Some apartments are rent stabilized, meaning rent rates are regulated and landlords can legally only increase the rent by so much. On the other hand, if the apartment is not rent-stabilized, your landlord has more control over setting the monthly rental rate. You’ll need to know under which category your building falls in before sitting down to negotiate. Most landlords try to retain good tenants, especially now that we’re in a pandemic. Don’t be afraid to cite this as a basis for any proposed rent decrease. But just be mindful that your landlord’s wiggle room may be dictated by your building type.

– Use your Payment History as Leverage:

Landlords are always concerned about on-time rent payments. And having a tenant who has a track record of on-time payments is quite a luxury in the rental market that no landlord would want to lose. Plus, finding a new tenant often comes at a higher price, and it takes both time, energy, and sometimes money to find a good one.

This would be in addition to any out-of-pocket expenses the landlord has to make to the property. If you already have a good rapport with your landlord and he or she knows you’ve paid rent on time consistently. It’s probably a safe bet that they would do anything to keep you as a tenant. Even if that means negotiating a reduced rental payment.

– Obtain Comparable Rental Data:

To the extent comparable rental data is available, use it during your negotiation. Consider units with similar square footage and amenities in your neighborhood and the average rent those residents pay as a basis for reducing or maintaining your rent and use that information when the time comes to negotiate.

– Remain Professional and Practice Empathy:

Given the current state of the real estate market, try to understand your landlord’s plight when meeting with them to discuss your rent. Don’t exploit the situation to be kind and reasonable. Consider writing a formal email or letter to the landlord requesting a lease renewal.

For bonus points, consider throwing in some nice words about your experiences with the landlord and your apartment, including any special memories you’ve made since living there. This may go a long way in pulling on your landlord’s heartstrings while simultaneously meeting your rent rate goals.

– Resolve to Renovate the Apartment:

No matter how hard the circumstances, some landlords do not bother much and insist on increasing rent to whatever ratio they like to. If you feel like nothing is working out to keep the increment low, ask the landlord to upgrade the apartment.

Request for the renovation or any new facility in the host if the landlord has to increase the rent. This way you can incline a question slightly your way or else it’s the landlord who would get all the benefit.

– Sign a Long Term Lease:

If you’re unable to secure a reduced or unchanged rent payment, consider committing to a longer lease term. Doing so would show your intent to stay, thus reducing any additional costs the landlord would incur by starting the leasing process over if you moved.

Read Also: Short Term Leases Vs. Long Term Leases

Conclusion:

It’s been a tough time for all of us, tenants and landlords alike. But remember this: everything is negotiable, including your rent.