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Last summer, my rent went up by 150 dollars. This is normal for urban residents, but my experience is not normal at all.Because it was not my rent increase, but a decrease of 150 dollars
It all started with a text message and I will show you how to negotiate rent so that you can pay less than now.
I lived in my apartment for three years and always Pay my rent Be on time and never disturb. I am a good tenant.
However, in May 2020, I noticed that my local real estate market was collapsing and decided to text my landlord. This is what I wrote:
Hello there [landlord], I noticed that the rental prices in our neighborhood have dropped significantly in the past few months.For example, there are several larger, newer apartments nearby with lower rents (see https://www.thepennyhoarder.com/save-money/how-to-negotiate-rent-2/?aff_id=178&aff_sub3=MainFeed__save-money/how-to-negotiate-rent-2/ with https://www.thepennyhoarder.com/save-money/how-to-negotiate-rent-2/?aff_id=178&aff_sub3=MainFeed__save-money/how-to-negotiate-rent-2/). COVID-19 also seems to put downward pressure on renters’ long-term prices.
Taking these factors into consideration, I would like to apply for a 25% rent reduction. If you cannot provide it, I understand, but I must make other arrangements. thank you.
It’s okay to ask
To my surprise, my landlord gave me a 15% discount within an hour, and I accepted it. From that day on, my monthly rent was US$850 instead of the US$1,000 I had previously paid.
Later in this article, I will explain why my message is so effective and how you can apply the same principles—whether popular or not—to negotiate lower rents for yourself.
I never thought that negotiating a rent reduction is an option for me.But today, the text message is still help me $1,800 per year.
How to negotiate rent
Before requesting a rent reduction from the landlord, you should first determine whether the time and conditions are appropriate. After all, if your landlord rejects your request and calls you a bluff, then you put yourself in a disadvantageous bargaining position.
There are two ways to determine whether it is a good time to request a rent reduction.
1. Talk to your tenant friends
Talking about money in some groups of friends is taboo, but it shouldn’t be. Chitchat is one of the best ways to grasp current financial trends, and it lays the foundation for the support system if you need it.
In fact, a friend of mine told me in a casual conversation his When the landlord told her he was going to move out, he gave him a rent reduction. Our discussion made me think about my rent, which proved to be a catalyst for me to actively ask for a price cut.
2. Know the market
If chatting with your friends is a passive way to learn about the real estate market, then Zillo Is active.But you don’t need to know all Regarding real estate to negotiate your lease: You only need to know the type of house you live nearby.
For example, suppose you pay $3,500 a month for a one-bedroom apartment in New York City. However, when you look at the other single beds nearby, you will notice that their average rent is $3,000.
You can conduct this study on any city, whether it’s Phoenix, Seattle, St. Louis, Orlando, or San Jose.
This comparison can be a strong sign that you are paying too much, and if you decide to leave, your landlord may have a hard time finding other people to move in. When you are negotiating, it can be very useful to have this information.
Of course, you need to get more specific information, not just family type and community: when conducting research, you should consider size, amenities, age, and other factors. However, if you find some houses that are similar to yours and have significantly lower rents, you may gain something.
5 tips for negotiating rent
These five tips will help you prepare to request a reduction in rent. It is not a good idea to negotiate without market knowledge and willingness to compromise.
1. Play the role of tenants
Unless the market conditions are extremely bad, your landlord will rarely agree to negotiate your rent without getting anything in return. Usually, you need to provide something to make it worth the money, so it’s important to find a lever that can be used in your specific situation.
For example, if the house you live in has outdoor space that needs to be maintained, you can negotiate a lower rent in exchange for maintaining the property yourself (landscaping, snow shoveling, etc.).
If you live in a City Apartments, You may not have much outdoor space, but you can return the unused parking space and your landlord can sell it to other tenants. You may also be able to take on other responsibilities, such as keeping the lobby clean or just paying attention to the property. Not all complex buildings have 24/7 employees.
all in all negotiation, The key is to provide something that is of low value to you but high to them (such as your parking space). If you check one or more of the following boxes, many landlords will be happy to lower your rent:
- Prepaid months in advance
- Sign an extension of the lease
- Proposal to extend the termination notice from 30 days to 60 or 90 days
- Promise not to smoke or keep pets in the apartment
Most landlords are willing to accept lower rents in exchange for financial security, which is why it is so valuable to provide renters with peace of mind in the form of lease extensions and termination notices.
2. Timing is everything
When Everything you negotiate is usually as important as you how is it You negotiate, this is especially true in housing. The best time to negotiate a rent reduction is two months before the end of the lease.
Why do you have to spend a month or two? Landlords and property managers know that even a brief vacancy between two tenants can cost them thousands of dollars, so they will be more willing to reach an agreement when your contract is about to expire. One to two months will give you enough time to inform them that you will move out, but for the landlord, the time is still too short to find new tenants easily.
3. Help your landlord complete on time
Time is not only important when you renegotiate the lease. For landlords, this is also a bigger, ongoing problem, because most housing markets are seasonal.
“If your lease ends in the off-season (for example, winter ends in a cold climate and summer is in a hot place), you can propose to renew your lease for more than 12 months to coincide with your next renewal,” said the CEO. Rany Burstein roommate finder Diggs, Say. “The landlord knows that if you leave, they don’t have to grab new tenants in the off-season, and it is easier to find a replacement for you. This is valuable to them, and it is usually worth their small concessions. By renewing 14 Months instead of 12 months, I saved $3,000 on the lease.”
4. Use micro events
There are many small incidents that affect the balance of power between tenants and landlords. For example, if your building is full of waiting lists, you will not have much leeway to negotiate rent. However, if there are many vacancies in your building, you may ask for a discount.
Burstein said: “Landlords are usually more willing to let you move in at a lower price, rather than spending money to prepare units for new tenants, and at the same time bear the risk of being vacant.”
Similarly, if a nearby building starts to undergo heavy construction—an event that makes your unit unwelcome—it will also make power work in your favor.
“I used this strategy after I started building a new building across the street,” Burstein said. “I have lived there for seven years, but just because construction was a hassle I had to endure, I was able to deduct $200 a month from the rent that year.”
5. Take advantage of macro events
Just as micro-events between you, your landlord, and your building affect rent payments, so can macro-events affect rent. This is the main strategy I use. As the pandemic was in full swing, I saw that my local market was collapsing and took action.
However, you don’t have to wait for the global pandemic to negotiate your rent. financial crisis Local events such as factory shutdowns can also affect housing supply and demand. Being aware of the local rental market at any time means that you will be ready to take action when the market is in your favor. As the saying goes, never let a good crisis go in vain.
Most landlords are wise, risk-averse investors, willing to adopt a flexible attitude towards tenants who make reasonable demands. However, most of us didn’t even ask for it at the beginning. The worst case scenario is that your landlord refuses and your rent stays the same. However, in the best case scenario, you may only save yourself thousands of dollars each year.
Contributor Jordan Bishop writes articles on personal finance and hotel topics.He is the founder Old oysters, A website specializing in financial product reviews.
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