We've heard time and time again- one of the many options renters are given when it comes to renting raises is to negotiate the rent price. Yet, does negotiating your rent actually work? How many people successfully lower or maintain the price with the help of their savvy negotiating skills.
In this article, we're discussing the truth about rent negotiation. Here's what we'll be covering.
- How much rent can you negotiate?
- How to negotiate your rent
- Pros of negotiating your rent
- Cons of negotiating your rent
Let's get into it!
How much rent can you negotiate?
The truth of the matter is that rent negotiation can help you lower rent costs. It's not always by much, but the price decrease adds up over time!
Most tenants that sign a 2-year lease can get their rent lowered by $50 to $100 per month. Once your lease is up, you would've saved a total of $1,200 to $2,400 dollars.
Some tenants get particularly lucky in their negotiations. They save thousands of dollars in rent by negotiating a longer lease length.
If your landlord isn't willing to budge on the rent price, try negotiating others items like amenities or utilities. Even saving the cost of a parking spot or waiving a fee can help lower your cost of living!
How to negotiate your rent
Before we get started, we're going to give you the lowdown- negotiating your rent isn't easy. You also have to factor in management, lease length, and the type of rental unit you occupy.
Consider the type of landlord that manages the building
Rental properties owned by private landlords are better for negotiating. These types of landlords are more lenient and will be open to hearing you out.
Buildings owned by large property management companies are completely different. You most likely have little success trying to negotiate your rent price down. However, it's good to keep in mind that many large buildings offer referral programs. If you're strapped for cash, look into referring to a friend or family member!
Offer to sign a longer lease
Most tenants experience the most success using this tactic. Instead of signing a 1-year long lease, tell your landlord you'll sign an 18-month or 2-year lease for a lower rent.
This option works best because it ensures that the rental unit will remain occupied for long periods.
Consider other types of rental accommodations
Many experts in the real estate sector say that the chances of negotiating your rent price through a property management company are low.
Similarly, rental units that are in a less desirable location or seem a little run down may carry greater chances for a successful negotiation. Landlords want to rent out these less enviable units. With a little persuasion on your part, you can find a home for cheaper!
Offer to pay upfront
Offering to pay up to a year of rent would provide the landlord with the security of having paid off rent.
This option could guarantee a decrease in your rent price. What's even better is that it'll financially benefit you and your landlord!
Pros of negotiating your rent
If we're being honest, there are a lot more pros than cons when negotiating your rent price. Check out what those are.
Pro #1: You'll save money on rent
The cost of rent has become quite hefty these past few years. Saving a couple of hundred bucks on rent can go a long way and would allow you to put it to greater use.
Pro #2: You could save money on amenities or utilities
If negotiating your rent price doesn't work, there's always a chance you'll get something else out of it!
Many landlords are willing to cover the cost of some amenities to compromise on negotiations. Others may even cover a small reno like replacing the floors and painting the walls.
Cons of negotiating your rent
With every pro, there's usually a con. Negotiating your rent is no different. Here are a few cons you might want to keep in mind.
Con #1: It could affect your relationship with your landlord
It's not the act of negotiating that could potentially hurt your relationship with your landlord. It's the manner in which you deliver it. Always make sure to be friendly and kind when presenting a negotiation. Coming off aggressive or demanding will only hinder your chances of lowering your rent.
Con #2: You may get tied to a longer lease
Some rent negotiations may result in longer leases. If you're ever in a bind and need to move earlier, you may have to pay extra fees or lose money.
Whenever signing a new lease, always make sure you're able to stay in the unit for the entirety of the lease. You could also confirm whether you can break your lease early or have other tenants sublet your home.
That concludes our take on negotiating your rent price!
If you're currently in the market for an apartment, head over to Lighthouse. We give our renters cash back on their leases and provide the ultimate guiding experience during your search. Our Lightkeepers (apartment search experts) help you find a home that's just right for you. Check us out here.