When we enter into an apartment lease, we don't initially consider negotiating as we would with a new home purchase. Especially in the current economic situation, most landlords are willing to negotiate at least on some of the terms. Landlords need renters as much as the renters need a new place. In most cases, landlords won't approach the rental agreement as negotiable, but with a few tips the contract can be open to negotiation.
A while ago, I met a potential roommate and she was telling me about the great deal she received on her last apartment. She explained that by being confident and asking some key questions, she was able to negotiate a lower rent that was previously stated as non-negotiable. We never became roommates, but I will always remember the great advice she shared.
- Be confident. Landlords respect potential renters who are confident and knowledgeable. You will receive favorable treatment.
- A little charm and friendliness goes a long way. Have you ever worked at a job and a customer took an interest in you as a person, which resulted in you dropping your guard and going the extra mile to help him/her? Open up the conversation with a question such as "How is your day?" or another question that leads to "breaking the ice."
- Ask many questions to become familiar with the rental agreement. Helpful negotiating questions/points are: "How long has the unit been vacant?" "Are the neighbors friendly?" "Have previous tenants smoked in the unit?" "Do other tenants have pets?" "What is the typical noise level in the building/neighborhood?"
- Get all the details up front. Ask for details in writing regarding the security deposit, maintenance, pet policy, rent due date, and lease term.
- Let the landlord know that you have other apartments/leases that you are considering. If you are a good potential tenant, they will want to win your business.
- Be upfront and honest with all concerns. Having open communication from the beginning helps develop a solid landlord-tenant relationship. A tenant's honestly makes the tenant more attractive to a landlord and thus they are more willing to negotiate.
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I agree that being pleasant and courteous is a plus, I don't see any tips for actually negotiating anything. I think that you can get a landlord to make some concessions, but without really good credit, you're in a much tougher position.
Ask if you can get a lease for longer than the standard 1 year--landlords like long-term tenants, less wear and tear on the property.
Your lease should spell out all the details mentioned above, and you should also check to make sure what utilities are covered, what the arrangements are for trash and recycling, and pet deposit.
I never really thought this was an option on an apartment but I recently discovered while helping a friend find a place in LA that it works. Sometimes the prices dropped as much as $150 from the beginning of the conversation to the end because people need those vacancies filled. Every month it sits there is another month they've lost money.
If you're in the position to do so, offering a year in advance can get you a big discount, especially here in Manhattan. I got the landlord to take off about 300 a month.
"If you are a good potential tenant, they will want to win your business."
As a landlord, I would say this is true to a point. However, if I get the sense that you're trying to gouge me, or that you're going to dicker over every little thing, I'll pass.
Even if you begin by asking how my day went.
At the end of the day, landlords have to pay the mortgage and the property taxes.
FantasticMrFaux...thanks for another great tip- asking for a longer lease term is usually very appealing for the landlord.
I'd get alot more info up front:
The amount that annual rent increases could reasonably be expected to be. Even if you can't commit to more than a year, you should be able to get your annual rent increases established in writing so that you can plan ahead.
What average monthly electrical and gas bills run for their units. Exactly what utilities does the rent cover, if any?
Policy for emergency repairs: Does the landlord DIY when he gets around to it, and how available are they - or does a management company handle these issues - or do they prefer to reimburse tenants for repairs?
Policy for painting - If they say "No Painting", is that negotiable with an added security deposit?
Same with pets - If they say "No", is that negotiable with an extra security deposit or additional monthly rent?
Does landlord only take checks for rent payments or will they accept wires directly to their account via an online billpay service?
What about working with rental companies?
Most of the rental properties where I live are rented out by one of two companies. I've never worked with a company before, any suggestions? Would these same ideas work?
I used to be a leasing agent. Occasionally, a potential renter would try to negotiate, but the property management company did not allow us to give any concessions on normal lease terms, because it could open the door to accusations of Fair Housing law violations. We did negotiate nonstandard lease terms, and were willing to negotiate for multiple leases. For example, an architectural woodworking company leased three apartments to house its craftsmen who were coming into town for three months to work on a project. They got a deal, even though short-term leases are usually more expensive. Also, we were allowed to give concessions to renters moving into a building that was undergoing renovation, to compensate them for the inconvenience -- but it was the same amount for each renter in that building.
Re: the suggestion to ask for a lease longer than one year, yes, it puts you in a better negotiating position. In the county where I live, every landlord of a property with more than 4 units is supposed to offer the option of a 2-year lease that contains a predetermined increase after the first year. But it has been my experience as a renter myself that a lease longer than 1 year is not a great idea. Remember that (a) it can be tough to break a lease if it turns out to be a less-than-desirable place to live, and (b) you might be locked into an increase that is higher than what everyone gets.
When working with rental companies, they usually just place the listing for the landlord and help them find tenants. In the end both the landlord and tenant deal directly with each other to negotiate the rental agreement. If for some odd reason the rental company is acting as the main contact, insist that you negotiate with the landlord directly.
I negotiated our current lease down by $350 per month as well as not having to put down a security deposit.
I felt like a stud after he had agreed to all of it.
It can sometimes work in your favor to negotiate the other way.
Having nicer appliances was important to me so I offerred to pay slightly more in rent if my landlord would replace an old stove and microwave with newer ones. They accepted. Then, because I was paying more rent, I asked them to agree not to raise my rent for yr 2 if I stayed, to which they also agreed.
If I hadn't stayed, they would probably have been able to ask for more rent anyway, since 2 key appliances would have been newer.
Interesting twist Katherine, it is all about winning and getting the best deal possible.
I'm a landlord, and my goal is to sign leases with tenants that (a) will not disturb the neighbors (b) take care of the property, i.e., clean it (c) allow me to return your security deposit in full with no drama in less than 24 hours and (d) pay the rent.
Everything is negotiable for that tenant.
My lawyer would never let me accept rent up front for more than a month...too many legal issues if the LL is properly escrowing. Having tried two-year leases I'll never do them again.
What tenants do I write leases for and negotiate with? Those that approach the process like a job; they're well prepared, on time, organized, good communicators.
It's also good to go into the "interview" as a knowledgeable consumer (knowing what the apartments in the immediate area are going for, etc.) These are times that we have to be aggressive to save that extra dollar. Thanks for the advice, Marcia
I really, really wish I had known you could negotiate on leases when I resigned mine. My rent went up $50 per month when I signed my new lease, and I just found out via Craigslist they are now offering the same exact apartment as mine for $30 cheaper than I am paying per month. And it has brand new carpet, whereas mine was trashed when I moved in (I complained, they cleaned it, didn't help). I was never late once paying my rent, and have never been complained on by neighbors, and now someone off the street will be getting a better deal than me! Is there anything I can do six months into my 15-month lease?
loveoldthings: Interesting perspective. Do you mind if I ask about your two-year lease experience? Our current landlord would only accept a two-year lease and it has been the worst experience of my entire adult life. I would never, ever, sign a two-year lease again. In fact, if month-to-month agreements weren't so much more expensive, I would stick to those exclusively. He has BROKEN us as renters.
How does a prospective landlord know that I am, in fact, that perfect tenant that loveoldthings mentions? In addition to being very quiet, rent-paying, and non-destructive, I hate hate hate moving and will stay in a place indefinitely. How do I convince a landlord of this in order to be able to negotiate?
I vastly prefer 2 year leases. I am on my third two year lease of my space and I intend to sign another when this one runs out. I feel strongly that signing two year leases has contributed to my significantly under market rent, and it also makes me feel more comfortable about making investments in my space (like recently having the bedroom painted).
Also, Meg P- go back to your landlord and renegotiate. Sure, they don't have to do anything to help you out, but they might be willing to. You really have nothing to lose in that situation.
I have also found that if you want upgrades to your space, offering to pay a small portion of the renovation/upgrade often makes the landlord willing to do it. I got my closet professionally finished with shelving, etc. that way. Worth every penny!!