Finding the perfect rental that checks all of your boxes - location, amenities, square footage, and budget - can seem like a daunting task. But what happens if you’ve found the right place and it’s slightly out of your budget? Or maybe you’re renewing your lease and the rent has increased? There’s one way you may be able to reduce your monthly rental budget without moving to a new place, and that’s by negotiating rent. Negotiating rent may sound intimidating, and you may wonder if you can even negotiate rent. We’ll outline the best practices and key takeaways to help you negotiate rent successfully.
Can you negotiate rent?
Yes, you can negotiate rent, but not every landlord will be receptive to this. Landlords are running a business, and asking them to reduce their revenue is not ideal for them. However, if you find that your property manager or landlord is curious or more lenient about the rent price, you may be able to negotiate your rent.
How to negotiate rent
Sometimes, it can be easier for new tenants to negotiate the monthly rent payment than existing tenants with a lease up for renewal. But if the landlord is open to rent negotiations and you have the right leverage, it’s possible, even when renewing a lease or rental agreement. Here’s what you should know to set yourself up for success when negotiating rent.
Do rental market research
Researching the rental market is a good skill to develop and maintain. Getting to know the surrounding rental rates for apartments and homes with similar amenities can help you to negotiate your rent. During your rental research, you probably found a few places you'd be willing to sign a lease to rent. Make a list of how they compare with the unit you're currently renting.
Keep this list in the back of your mind as you respectfully speak with the property manager or landlord. If you let them know their unit is one of the few you're looking at, you may have more bargaining power. If the property manager or landlord believes their unit is your only option, they may not feel compelled to lower the rent.
Similarly, if you’re renewing your lease in the same apartment, check the current rent prices of other units in your building. Suppose a comparable unit has a rent price that’s considerably less than what you’re currently paying. In that case, this can be a positive sign to negotiate your rent with your leasing agent or property manager.
Local rent prices aren’t a secret, and you can find them in newspapers, Craigslist, or real estate listing sites. Though rent prices can change daily, having a rent range in mind can give you a significant advantage in negotiations.
Choose the right counteroffer
Go into negotiations understanding what you want to accomplish. Start by determining what the proper rent amount is to offer when you start negotiations. If you offer too low, you may end up insulting your landlord. That’s not the best way to start your landlord-tenant relationship. You also don't want them to think you haven't done your research about current market rents.
Researching local rental rates similar to your apartment in cost and amenities is valuable information for a counteroffer as it gives you some hard limits to your price. When making the right counteroffer, start a little lower than you'd be willing to pay. Starting with a lower rent allows compromise, so both parties consider it a win-win negotiation.
Negotiate during the off-season
The time of year can be significant for rent negotiation. Rentals are often seasonal, and there are times when renting demand is higher than the supply of units. Choosing the wrong time of year can make it harder, but not impossible, to negotiate your rent.
The peak season for renting is often during the spring and summer. Negotiating your rent may work, but the landlord has less incentive to agree to a lower price during the busy time of year. The landlord is in a position of power as they know there’s a lack of available apartments and housing units compared to the number of tenants moving.
In the off-season, typically fall and winter, renters are not moving quite as readily, and vacant units may not fill as fast. During this time, landlords are more likely to negotiate to avoid too many vacancies. This may also apply to monthly fluctuations. Many leases finish at the end of a month, and vacancies are higher during the first week than the second week of the month. Therefore, property managers may be more open to your offer during the last week of each month.
Negotiate before your lease ends
Timing is crucial for a successful negotiation. If your current lease is coming to an end, it's best to negotiate rent a couple of months in advance. Starting the conversation early will help you decide if you can negotiate a rent decrease or if moving is the better option. This gives you time to go back and forth with the landlord and find a new apartment, if necessary.
If the landlord senses that you’re in a rush with no other options, they may be less willing to negotiate. You also don’t want the landlord to feel like they were forced into making a decision. By giving them time, they can do their research as well to determine if the ongoing tenancy at a different rent rate makes sense.
Prove you’re a good tenant
It's human nature to want to do business with people you know, like, and trust. Suppose you've never rented from that particular landlord. In that case, letters of recommendation from personal references may help convince your landlord that you'd make a reliable tenant, even at a lower rent price.
Recommendations from your previous landlords should show that you paid rent on time, didn't cause problems with other tenants, left the unit in good condition, and had a cosigner (if one was necessary). These factors speak to your character and potentially give you leverage over an average or subpar tenant.
If you’re renewing your lease, you can use a similar approach to remind your landlord that you have the qualities of a good tenant, such as informing them of rental issues respectfully, paying your rent on time, and helping others in the building. Your landlord may have forgotten your positive qualities, so remind them how helpful it is to keep an existing tenant in the apartment.
Consider adjusting the terms of your lease
You could effectively prevent a rent increase by considering different lease terms, such as a longer lease. However, this may not be the right route unless you’re planning on living in your current residence for a while.
In some cases, this could mean extending your lease term from one year to 18 months. Your landlord may also benefit from changing your move out date to a better time of the year, one where they can fill the unit faster than your original lease term. For example, you could offer to move out at a different time, like the summer rather than winter. The question then becomes whether they would be willing to decrease your rent in exchange for adjusting to a longer term lease.
Leverage amenities at other properties
If rents across your area are more or less the same but amenities vary, it’s in your best interest to discover all you can about other apartments. If there are units with more amenities for less rent, use these rentals to argue for a lower monthly rent.
Suppose your apartment is close to work, school, or in your ideal neighborhood, but it doesn't have a pool. However, an apartment nearby charges less for rent and has a pool and communal gym. If you’re willing to move to this other property that costs less and has better amenities, you could use information about this apartment as leverage for lowering rent.
Consider non-monetary concessions
What do you do if your landlord or property manager is firm on rental rates and won't budge? Consider asking for other items you'd typically have to pay extra for that won't cost them anything.
- For example, consider asking for a second parking pass if you have visitors often or a free parking space.
- Or, if you won’t be using your apartment during certain months, you could ask to sublet the apartment. Subletting would save you money and avoid the trouble of moving out permanently.
- Landlords know that word-of-mouth marketing brings credibility. Ask if you can get a referral fee for helping your landlord fill vacant units.
- If your building allows pets, and you don't have one, can you negotiate lower rent because your unit will be easier to clean when you move out?
- If you don't have a car, can your landlord offer your spot to another tenant and give you a discount on rent?
Offer the landlord something of value in exchange
Depending on how much you want to lower your rent, would you consider doing something for the landlord to help them in exchange for a discount on your rent? For example, most buildings have an on-site manager. If the landlord is not the on-site manager, could you help with those tasks in exchange for a lower rent?
This may include things like cleaning, maintenance, administrative, or marketing tasks. Helping your landlord with some of these activities could reduce their expenses and justify a rental rate reduction. Note that this is more likely to work in smaller apartment complexes.
Or would you be willing to pay several months of rent upfront to receive an overall reduced average rent? Some landlords may appreciate not having to hunt down late rent payments. Not all landlords accept rent in advance, but if they initially decline the offer, consider opening an escrow account and showing them the statement. This would give them peace of mind that your rent is covered for a few months.
Takeaways when negotiating rent
While negotiating rent can be time-consuming and involves a lot of research and communication, the benefit of a reduced rent can be great. These five tips can be helpful once you’re ready to negotiate.
Negotiate in person
This might be intimidating, but when you ask the landlord for a rent decrease via letter, email, or phone call, it's much easier for them to say, "No." Having a face-to-face conversation may make it more challenging for your landlord to refuse you immediately. It's best to have these conversations in person no matter what you negotiate, including rent. Plus, an in-person meeting is a great chance to lean on any rapport you've built in the past or to build new rapport before diving into negotiations.
Prepare documents
When negotiating your rent with your landlord, bring rental pricing for other units with you and a list of amenities. You can also make a summary of your rental payments, references, a credit report, or other documentation to help you make your case for a rent reduction. The goal is to show that you've done your research and have evidence that a reduced rent is fair.
Have a plan
If lower rent is not your goal, know what you want from your negotiations, such as if you're looking for something specific, like a parking space, lower pet fees, access to amenities, or subletting your unit over the summer. In your plan, include how to accomplish your goal - such as how to ask what you want and what you’re willing to negotiate. If negotiations don’t go well, have a backup plan for moving. This can help you from agreeing to terms that you’re not willing to settle for, without worrying that you don’t have another place lined up.
Be polite and patient
Many seasoned landlords don’t expect tenants to be confident, courteous, and patient when negotiating rent. You don’t want to be too aggressive or too compliant in your negotiations. Be respectful and negotiate for what you want. Don't sugarcoat the situation if issues need to change. By staying diplomatic, you may come to a compromise that works and is better than what you had before.
Ultimately try again
Starting rent negotiations with your landlord or property manager can be scary. However, if you've been a great renter and haven't caused problems, there’s no reason not to have that conversation if you want to negotiate your rent. If you ask and they deny you a different rental rate, that's fine, but it doesn't mean you can't try during a different time of the year or when a few units are vacant. If you're reliable and renewing your lease at a lower rate saves your landlord the costs of finding a new tenant, you're in an excellent position to negotiate your rent at another time.
Negotiating your rent can be tricky and uncomfortable. Suppose you're a good tenant or a prospective tenant and can negotiate your rent respectfully. In that case, you could potentially lower your rent and build a better relationship with the landlord or property manager. As with any lease agreement, be sure to get your newly-acquired deal in writing as proof of your successful negotiation.
Redfin does not provide legal, tax, or financial advice. This article is for informational purposes only and is not a substitute for professional advice from a licensed attorney, tax professional, or financial advisor.
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