Comments on: Save on Housing Costs: Renegotiate Your Rent With Landlord

By: Brian

Brian — Tue, 20 Jul 2010 00:04:50 +0000

I used rentjungle.com to negotiate a cheaper rent with my landlord. It has a tool that can show the average rent in a specific area. I showed him that I was paying considerably more than others in my neighborhood and he agreed to lower it!

By: Bob

Bob — Fri, 12 Feb 2010 18:13:21 +0000

I and wife have lived in this apt 7 years now. Pay on time
and good tenants (both over 65). Overtime, rent went from
700.00 per month to 917.00 month. The large corp than owns these apartments currently have a high vacancy rate.
Managed to get rent down to 867.00 month from 917.00 month. I just found out however they are giving new people
rent of only 775.00 per month, same apartment size etc.
No fee for credit check (we did pay however) and no deposit
based on credit report. Can landlords give different terms
for new renters as opposed to older tenants based on time
in units?

By: jb

jb — Mon, 01 Jun 2009 05:59:45 +0000

The best way to negotiate your rent renewal is to use the only real leverage you have – the threat of leaving. I just did it at my complex and got an 8% reduction (saves me about $140/month). If you go in to the leasing manager with the list of properties you have already scoped out, the rents they are charging, and how much lower that is than your current rent you have already won 50% of the battle. The remaining 50% is convincing them you are ready to move if you don’t get a lower rent. Make it all about the money (e.g., well at that price it is much better for me to move, even accounting for the cost of hiring movers…) and make it clear that you are ready to move (e.g., I need to know what you can do today, I have three scheduled appointments to see units in XX area…) Then use traditional negotiating tactics, reject their first offer as though it were absurd.

The thing is, you have to actually be willing to move. If you aren’t willing to follow through on the threat, then they have already won the negotiation.

By: Link Round-up - Weekend Get Away Edition | Do You Dave Ramsey?

Link Round-up - Weekend Get Away Edition | Do You Dave Ramsey? — Sun, 12 Apr 2009 11:00:25 +0000

[...] at My Money Blog offers a good idea for renters in his Save on Housing Costs: Renegotiate Your Rent. I find this to be sound and practical advice but if YOU are the landlord you may want to [...]

By: Jandy

Jandy — Thu, 09 Apr 2009 16:49:12 +0000

HELP! I am going through a crazy situation now. My lease is coming up at the end of April. I got a letter last week from our landlord stating that I can renew my lease at the same rate I am paying ($1,130 for one bedroom -no utilities included-) for another year. They claim the rate new renters in our complex are paying is $1,180/mo. My husband and I are thinking of buying a little house or a condo in the next few months. Although we have not started looking, we do not want to commit to another year because we hope we can find a good house in less than that time. The biggest problem we have is that in their letter, they are telling us we can stay on a month to month, but we have to pay a $300 month to month fee. I checked my lease and it says that if not renewed, the lease will continue on a mtm basis, but it says nothing about a fee related to that. Don’t you guys think that is crazy?! Has anybody gone through that? Do you think I could challenge it? Any suggestions would be really appreciated. Thanks!!!

By: Are you paying too much for your rent? | 6Bubbles - Grad School, Money, Life

Tue, 31 Mar 2009 08:47:17 +0000

[...] However, you may not be in my situation and may be overpaying for rent. Check out Zilpy for rental prices in your neighborhood. Zilpy shows the medium rent for various sized apartments. You can check out the rental price history to see how prices are going up or down in your neighborhood and complain that the rent increase is too much compared to the neighborhood rates. Be sure to check out ideas on how to negotiate for a lower rent from BrokeGradStudent or MyMoneyBlog. [...]

By: The Strump

The Strump — Sun, 29 Mar 2009 03:58:49 +0000

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For the past 15 years, I’ve simply done a monthly contribution to my bank and purchased one of their funds – and withdrawn money a few times. Oops! Bu…

By: DDT

DDT — Sun, 29 Mar 2009 02:17:55 +0000

Great article and advice. Thanks for sharing these tips!

By: Jim

Jim — Fri, 27 Mar 2009 19:58:07 +0000

Kevin said: “Also, legally leases protect renters, not landlords.”

No. A lease is a legal contract between 2 parties. Any contract has 2 sides and doesn’t only protect one party.

Leases are geared mostly towards protecting the landlord. Leases are written and required by the landlord. Since the landlord is the one creating and requiring the lease, thats an obvious indication its written with the interest of the landlord in mind.

By: Bob

Bob — Fri, 27 Mar 2009 15:14:18 +0000

I am a landlord. From my perspective, I don’t see any harm in a tenant attempting to renegotiate the rent amount. The worst the landlord can say is, “no.”

Personally, I would not really be inclined to lower anyone’s rent unless the tenant was way above market. If the tenant is only a little above-market, I’d offer to put in a ceiling fan in or some other upgrade instead (why do tenants love ceiling fans so much? Never ceases to amaze me how I can keep a tenant with a $35 ceiling fan.)

If the tenant is at-market, then no dice. I know you can’t do better elsewhere, plus you have moving expenses, plus I can rerent your unit at the same price or better. Why should I lower your rent?

Oh, and spare me the “average rents have declined by xx%” and the “zippy the pinhead says my rent should be reduced by $xx.xx” silliness. I am renting identical units to yours day in and day out, so I know what market rent is to the penny. No website can tell you what market rent is for a particular unit in a particular building.

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By: dal1

dal1 — Thu, 26 Mar 2009 14:35:11 +0000

One shoe doesn’t fit all feet. I love the renter who made the landlord and offer and he came down on the rent just to have them now considering moving. That’s tells it all.

I provide quarterly pest spray for free and have to check the new HVAC filters because no tenant changes them, even in a house.

I pay yard service twice a month, even in house rentals because I can’t remember a tenant cutting the lawn or watering anything. It’s just the current mindset.

Property taxes and insurance go up every 5 years in our town (just got them) and a $750 rental house went up 18%. Already paying 6% tax base.

Bottom line, if you are maintaining your property, beating pests back, keeping the lawn, cutting rotten trees down, etc. etc. you are breaking even and lets not forget there ain’t no appreciation these days so………..I ask you …….what’s to negotiate? The next step investors will make is to exit the market and sell these losers to people who are getting $8000 from us the American people to buy a house.

Keep it up.

By: ghost

ghost — Thu, 26 Mar 2009 04:13:03 +0000

To Kevin -

Thanks for the tips. I will have to google the renter’s laws. I appreciate it!

By: Maury

Maury — Thu, 26 Mar 2009 02:13:27 +0000

You don’t get what you deserve in life, you get what you negotiate…

By: Kate

Kate — Wed, 25 Mar 2009 14:49:23 +0000

According to Zilpy, my rent is right about where it should be. But, for those who are being overcharged, it seems like now is the time to take control of the situation. Even if you’re only able the lower your rent by $25 or $50 per month, those savings can quickly add up. A true example of The Power of Small at work, and a great way to put money toward bigger life goals, like homeownership.

By: TStrump

TStrump — Wed, 25 Mar 2009 03:24:01 +0000

I wish more landlords would think this way – don’t they see the value of long-term, low maintenance tenants.
Sadly, in Vancouver it is tough to find decent accommodation.
Some companies don’t care and jack up the rents and don’t do the proper maintenance.

By: Carlo

Carlo — Tue, 24 Mar 2009 17:41:07 +0000

I would think you would also have to factor in the cost of MOVING.

By: Kevin

Kevin — Tue, 24 Mar 2009 17:13:53 +0000

Furthermore, I am surprised that negotiating a rent decrease would be an option for most people. There are more renters now than ever before because of all the people who have been kicked out of their homes through foreclosures.

By: Kevin

Kevin — Tue, 24 Mar 2009 17:11:42 +0000

To ghost -

Check the applicable renters laws in your state. I can’t imagine any state requiring more than 30 days notice. Also, legally leases protect renters, not landlords. The only monies you are required to pay to a landlord, if you terminate a lease early, is for lost rent for not giving enough notice (as required by State law) for the landlord to find a new renter, and the costs to clean the apartment and repair any damage you did. That’s it. Early termination fees and paying the remainder of the lease is bogus.

By: GS

GS — Tue, 24 Mar 2009 16:31:49 +0000

Great article! Another tip is, if possible, try and get an apartment that will include heat and utilities in the rent, otherwise you’ll be paying a lot more money a month. Also, in this economy, I feel a month-to-month lease is better. Then you’re not locked into something that you can’t afford. That’s just my two cents, though.

By: Save Your Rent Money « Family Money Today

Save Your Rent Money « Family Money Today — Tue, 24 Mar 2009 09:33:53 +0000

[...] Your Rent Money The Money Blog did a real good post the other night on how to go about getting your rent reduced. Aside from a mortgage, rent is one of the biggest ongoing costs in a person’s budget. So [...]

By: ND

ND — Tue, 24 Mar 2009 03:51:56 +0000

Very useful article. Thanks a lot.

By: Christine

Christine — Mon, 23 Mar 2009 21:39:22 +0000

Thanks for the response Eric. I actually live in a 2 bedroom 1 bath house in a very small, yet picturesque town. The property is managed by a knowledgeable real estate/property management company. Good to know about the occupancy limits for general purposes though. I manage a property in another town for my family and it is always helpful to understand the law.

If our tenant were to ask for a decrease in rent I would ask what could he offer in return as his rent is definitely fair market value. Perhaps I would lower it if he took responsibility for the yard maintenance (and I could therefor cancel the gardner) for instance, but then again we have the gardner in the first place because tenants are notoriously bad gardeners! I guess what I want to see is that the tenant has put time, thought, and hard facts into their appeal for a reduction.

By: Young Cash Cow

Young Cash Cow — Mon, 23 Mar 2009 21:37:04 +0000

If you’re rent doesn’t include cable, internet, or utilities, bring that into the discussion as well. Point out other landlords that offer their tenants these types of things free of charge. In my case, I wasn’t able to reduce my rent – but within a few months my landlord installed high speed internet for everyone without raising the rent a dime.

By: Jim

Jim — Mon, 23 Mar 2009 20:38:01 +0000

I’m a landlord. If I had a renter who is a GOOD renter and their lease is due then I’d be willing to adjust their rent if I”m above market.

I wouldn’t be concerned about harming the landlord. Renting property is a business after all and they have to be competitive. If their mortgage is high then thats their problem, not yours. Of course the landloard has no reason to drop rents if they don’t want to or if they are already competitive.

The best time to try to negotiate rent is if you are already month to month or if your lease is about due. And if other renters in the same comlex have different rates or if you see the complex offering discounts to new renters then that gives you obvious leverage.

I’d take sites like Rentometer or Zilpy with a big grain of salt. Those are just broad average figures and every rental is different. For our rental it says median rents are $925-950 and our house easily rents for $995. Those sites are not comparing apples to apples. You don’t know if thats a good neighborhood, if the house is clean or if its by the railroad tracks or if the landlord is negligent in their duties, etc.

Do NOT assume that since housing prices are going down that rental rates will drop in the same way. Rent rates do not usually move the same rate that housing prices do. In my area real estate dropped 10% in a year and rents dropped 3%. So don’t assume that if housing costs dropped 25% in your city that rents should to. Landlords have fixed costs they cant avoid and and other things influencing what rent they charge.