Difference between revisions of "Negotiate Price When Renting an Apartment"
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== Steps == | == Steps == | ||
===Doing your Research=== | ===Doing your Research=== | ||
| − | #Start the process early. The earlier you begin conducting research, the more time you will have to negotiate the deal you want.<ref>http://www.csmonitor.com/Business/Saving-Money/2015/0415/Nine-ways-to-negotiate-your-rent</ref> | + | #Start the process early. The earlier you begin conducting research, the more time you will have to negotiate the deal you want.<ref name="rf1">http://www.csmonitor.com/Business/Saving-Money/2015/0415/Nine-ways-to-negotiate-your-rent</ref> |
#*Waiting until your current lease is about to expire and you have to move immediately does not provide you with adequate time to research, plan, and negotiate. | #*Waiting until your current lease is about to expire and you have to move immediately does not provide you with adequate time to research, plan, and negotiate. | ||
#*Leaving things until the last minute will also make the process more stressful. | #*Leaving things until the last minute will also make the process more stressful. | ||
#*Prepare early so that you are negotiating from a position of strength. | #*Prepare early so that you are negotiating from a position of strength. | ||
| − | #Consider the timing carefully. Avoid trying to rent an apartment during the busy rental season for your area. Landlords and property managers are less willing to negotiate if they believe there is a great demand for apartments and plenty of potential tenants.<ref> http://www.csmonitor.com/Business/Saving-Money/2015/0415/Nine-ways-to-negotiate-your-rent</ref><ref>http://www.forbes.com/2009/04/21/pay-less-rent-personal-finance-young-money-landlord-tenant.html</ref> | + | #Consider the timing carefully. Avoid trying to rent an apartment during the busy rental season for your area. Landlords and property managers are less willing to negotiate if they believe there is a great demand for apartments and plenty of potential tenants.<ref name="rf2"> http://www.csmonitor.com/Business/Saving-Money/2015/0415/Nine-ways-to-negotiate-your-rent</ref><ref name="rf3">http://www.forbes.com/2009/04/21/pay-less-rent-personal-finance-young-money-landlord-tenant.html</ref> |
#*Landlords are often more willing to make deals at the end of the month, because they don’t want a unit to stay empty for an additional month. | #*Landlords are often more willing to make deals at the end of the month, because they don’t want a unit to stay empty for an additional month. | ||
#*If you live in an area with a college or university, try not to begin this process right before the start of a new semester since these are often the busiest rental periods. | #*If you live in an area with a college or university, try not to begin this process right before the start of a new semester since these are often the busiest rental periods. | ||
| − | #*Most people move between May and September, so winter is good time to look for new apartments and negotiate more favorable deals with landlords.<ref>http://money.usnews.com/money/blogs/my-money/2013/09/11/the-best-time-to-move-for-renters</ref> | + | #*Most people move between May and September, so winter is good time to look for new apartments and negotiate more favorable deals with landlords.<ref name="rf4">http://money.usnews.com/money/blogs/my-money/2013/09/11/the-best-time-to-move-for-renters</ref> |
| − | #Investigate the current rental market. Educating yourself about the current rental market in your area will help you determine what might constitute a fair rental price, which is essential information to have during the negotiation process. Your research will also give you a better indication of whether the landlord or property manager might be willing to negotiate.<ref>http://www.zillow.com/blog/how-to-negotiate-lower-rent-with-a-potential-landlord-123491/</ref><ref> http://www.apartmenttherapy.com/be-a-negotiation-ninja-5-ways-to-save-on-rent-without-getting-a-roommate-203108</ref> | + | #Investigate the current rental market. Educating yourself about the current rental market in your area will help you determine what might constitute a fair rental price, which is essential information to have during the negotiation process. Your research will also give you a better indication of whether the landlord or property manager might be willing to negotiate.<ref name="rf5">http://www.zillow.com/blog/how-to-negotiate-lower-rent-with-a-potential-landlord-123491/</ref><ref name="rf6"> http://www.apartmenttherapy.com/be-a-negotiation-ninja-5-ways-to-save-on-rent-without-getting-a-roommate-203108</ref> |
#*Find out what the average apartment rents for in the neighborhood and city where you are looking to rent. | #*Find out what the average apartment rents for in the neighborhood and city where you are looking to rent. | ||
#*Talk to others in the apartment building to find out what they pay per month. | #*Talk to others in the apartment building to find out what they pay per month. | ||
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#*Some landlords might offer you a discount if you refer friends or colleagues. | #*Some landlords might offer you a discount if you refer friends or colleagues. | ||
#*Apartment complexes sometimes post information about special deals and reduced rates on their websites or community bulletin boards. | #*Apartment complexes sometimes post information about special deals and reduced rates on their websites or community bulletin boards. | ||
| − | #Ask a real-estate broker for help. If you are having trouble with your negotiations or are uncomfortable doing this yourself, contact a broker. Brokers connect buyers and sellers, and will be able to guide you through this process.<ref | + | #Ask a real-estate broker for help. If you are having trouble with your negotiations or are uncomfortable doing this yourself, contact a broker. Brokers connect buyers and sellers, and will be able to guide you through this process.<ref name="rf3" /> |
#*In many cities, the landlord—not the tenant—pays for a broker's services. | #*In many cities, the landlord—not the tenant—pays for a broker's services. | ||
#*If you want to stay in your current apartment and just negotiate a lower price, brokers probably won’t be able to offer assistance. | #*If you want to stay in your current apartment and just negotiate a lower price, brokers probably won’t be able to offer assistance. | ||
===Promoting Yourself as a Prospective Tenant=== | ===Promoting Yourself as a Prospective Tenant=== | ||
| − | #Conduct negotiations in person. While it’s okay to conduct your research online, over the phone, or via email, it’s often to your advantage to conduct the rent negotiations in person.<ref | + | #Conduct negotiations in person. While it’s okay to conduct your research online, over the phone, or via email, it’s often to your advantage to conduct the rent negotiations in person.<ref name="rf1" /> |
#*It’s much easier for a landlord or property manager to dismiss your questions over the phone or in an email. | #*It’s much easier for a landlord or property manager to dismiss your questions over the phone or in an email. | ||
#*Setting up an actual appointment is more professional than dropping by unannounced, and it demonstrates that you respect the person’s time. | #*Setting up an actual appointment is more professional than dropping by unannounced, and it demonstrates that you respect the person’s time. | ||
| − | #Dress for success. When you arrive to view a prospective apartment or negotiate with a landlord, dress professionally. This will help show that you are a responsible tenant who will clean and care for the place you would like to rent.<ref>http://money.usnews.com/money/blogs/my-money/2013/05/17/4-tips-for-negotiating-an-apartment-lease</ref> | + | #Dress for success. When you arrive to view a prospective apartment or negotiate with a landlord, dress professionally. This will help show that you are a responsible tenant who will clean and care for the place you would like to rent.<ref name="rf7">http://money.usnews.com/money/blogs/my-money/2013/05/17/4-tips-for-negotiating-an-apartment-lease</ref> |
#*Landlords will treat you with more respect and take your requests seriously. | #*Landlords will treat you with more respect and take your requests seriously. | ||
#*It can also make a good impression to arrive in a clean car. | #*It can also make a good impression to arrive in a clean car. | ||
| − | #Provide proof that you are a great tenant. Arrive prepared with references, pay stubs, and bank balances, which emphasize you have a stable job and sufficient income to afford this apartment.<ref | + | #Provide proof that you are a great tenant. Arrive prepared with references, pay stubs, and bank balances, which emphasize you have a stable job and sufficient income to afford this apartment.<ref name="rf7" /> |
#*Although it's usually part of the rental application process, you can also encourage the landlord to conduct a background check, credit check, and employment verification. This will reinforce that you are an ideal tenant with nothing to hide. | #*Although it's usually part of the rental application process, you can also encourage the landlord to conduct a background check, credit check, and employment verification. This will reinforce that you are an ideal tenant with nothing to hide. | ||
#*If you are on good terms with your current landlord, ask them to write a short letter explaining that you are an excellent tenant who pays their rent on time and takes care of the rental unit or property. | #*If you are on good terms with your current landlord, ask them to write a short letter explaining that you are an excellent tenant who pays their rent on time and takes care of the rental unit or property. | ||
| − | #Describe your positive attributes. Landlords want tenants who are honest, reliable, and who will be good stewards of the property. To emphasize this point to a prospective landlord or property manager, mention some of your positive qualities. Here are a few good facts to highlight if they apply to your situation and lifestyle:<ref>http://homeguides.sfgate.com/can-negotiate-apartment-rent-8365.html</ref><ref>http://lifehacker.com/how-can-i-effectively-negotiate-my-rent-1490551219</ref> | + | #Describe your positive attributes. Landlords want tenants who are honest, reliable, and who will be good stewards of the property. To emphasize this point to a prospective landlord or property manager, mention some of your positive qualities. Here are a few good facts to highlight if they apply to your situation and lifestyle:<ref name="rf8">http://homeguides.sfgate.com/can-negotiate-apartment-rent-8365.html</ref><ref name="rf9">http://lifehacker.com/how-can-i-effectively-negotiate-my-rent-1490551219</ref> |
#*You always pay your rent on time or even early. | #*You always pay your rent on time or even early. | ||
#*You are a nonsmoker. | #*You are a nonsmoker. | ||
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#*You are quiet and courteous. | #*You are quiet and courteous. | ||
#*You plan to live in the complex or unit for more than one year. | #*You plan to live in the complex or unit for more than one year. | ||
| − | #Arrange for a cosigner or guarantor. If you do not have a good credit score, are between jobs at the moment, or don’t make enough money to qualify for the rental, you might need to arrange for a co-signer on your lease. A cosigner, or guarantor, is a third party who agrees to pay rent if you are unable to do so.<ref>http://money.usnews.com/money/blogs/my-money/2013/06/07/why-some-use-a-co-signer-on-their-apartment-lease</ref> | + | #Arrange for a cosigner or guarantor. If you do not have a good credit score, are between jobs at the moment, or don’t make enough money to qualify for the rental, you might need to arrange for a co-signer on your lease. A cosigner, or guarantor, is a third party who agrees to pay rent if you are unable to do so.<ref name="rf10">http://money.usnews.com/money/blogs/my-money/2013/06/07/why-some-use-a-co-signer-on-their-apartment-lease</ref> |
#*From a landlord's perspective, this will help you seem like a more reliable tenant and a secure investment. | #*From a landlord's perspective, this will help you seem like a more reliable tenant and a secure investment. | ||
#*Although a prospective landlord might tell you that you need a co-signer, you can also mention this option during the negotiation process. | #*Although a prospective landlord might tell you that you need a co-signer, you can also mention this option during the negotiation process. | ||
| − | #*Landlords and property managers often look for tenants whose monthly income is at least three times the cost of the monthly rent.If you don’t qualify based on this criterion, inquire about the possibility of a co-signer or guarantor.<ref>http://www.moneycrashers.com/monthly-rent-afford-calculator/</ref> | + | #*Landlords and property managers often look for tenants whose monthly income is at least three times the cost of the monthly rent.If you don’t qualify based on this criterion, inquire about the possibility of a co-signer or guarantor.<ref name="rf11">http://www.moneycrashers.com/monthly-rent-afford-calculator/</ref> |
===Being Flexible When Negotiating=== | ===Being Flexible When Negotiating=== | ||
| − | #Don’t be confrontational. Although your adrenaline might be pumping during the negotiation process and this can be a stressful situation, you will do more to help your case by being respectful, polite, and calm.You could lose your negotiating power by being disrespectful or trying to strong-arm someone.<ref | + | #Don’t be confrontational. Although your adrenaline might be pumping during the negotiation process and this can be a stressful situation, you will do more to help your case by being respectful, polite, and calm.You could lose your negotiating power by being disrespectful or trying to strong-arm someone.<ref name="rf7" /><ref name="rf5" /> |
#*If this situation goes the way you hope, the person you are negotiating with will likely be your landlord, and you don’t want to start off with a negative relationship. | #*If this situation goes the way you hope, the person you are negotiating with will likely be your landlord, and you don’t want to start off with a negative relationship. | ||
#*People are usually more willing to be accommodating and helpful if they are being treated well. No one wants to deal with a rude tenant. | #*People are usually more willing to be accommodating and helpful if they are being treated well. No one wants to deal with a rude tenant. | ||
| − | #Ask for a lower price than you are willing to pay. When negotiating, it’s important to initially ask for a lower price than you are willing to pay, because it’s possible the landlord might agree to the deal. If they aren’t amenable to the initial offer, this tactic usually encourages them to name an alternate price, and then you can counter with another offer.<ref | + | #Ask for a lower price than you are willing to pay. When negotiating, it’s important to initially ask for a lower price than you are willing to pay, because it’s possible the landlord might agree to the deal. If they aren’t amenable to the initial offer, this tactic usually encourages them to name an alternate price, and then you can counter with another offer.<ref name="rf5" /> |
| − | #Be willing to make concessions. One of the keys to successful negotiating is offering a deal in which the other person also wins something. Offering to give up on something or be accommodating might help you seal the deal. Here are a few ideas to consider:<ref | + | #Be willing to make concessions. One of the keys to successful negotiating is offering a deal in which the other person also wins something. Offering to give up on something or be accommodating might help you seal the deal. Here are a few ideas to consider:<ref name="rf9" /> |
#*If you do not have a car, you might be able to give up access to a parking space. | #*If you do not have a car, you might be able to give up access to a parking space. | ||
#*If you have the available funds, you could offer to pay your rent in advance. | #*If you have the available funds, you could offer to pay your rent in advance. | ||
#*Commit to a longer lease term in exchange for a lower price. | #*Commit to a longer lease term in exchange for a lower price. | ||
#*Agree to provide longer notice when moving out. | #*Agree to provide longer notice when moving out. | ||
| − | #Be open to alternative amenities or discounts. If the landlord is unwilling or unable to lower the rental price, you might still be able to negotiate amenities or discounts that save you money and make the apartment a more affordable option. Unless you are willing to ask, you never know what options might be available.<ref | + | #Be open to alternative amenities or discounts. If the landlord is unwilling or unable to lower the rental price, you might still be able to negotiate amenities or discounts that save you money and make the apartment a more affordable option. Unless you are willing to ask, you never know what options might be available.<ref name="rf7" /> |
#*Ask for specific repairs to be made to the apartment or painting to be completed before you move into the unit. | #*Ask for specific repairs to be made to the apartment or painting to be completed before you move into the unit. | ||
#*See if you can pay a lower security deposit or if application fees can be waived. | #*See if you can pay a lower security deposit or if application fees can be waived. | ||
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#*Offer to help staff the office on the weekends or at busy times of the year. | #*Offer to help staff the office on the weekends or at busy times of the year. | ||
#*If your landlord seems to need help when it snows, offer to shovel the walkway. | #*If your landlord seems to need help when it snows, offer to shovel the walkway. | ||
| − | #Remember that you have options, and do not be afraid to mention them. If the landlord knows you are considering other places with lower rents, you might have an extra bargaining chip.<ref>http://www.moneycrashers.com/negotiate-lower-apartment-rent-payments/</ref> | + | #Remember that you have options, and do not be afraid to mention them. If the landlord knows you are considering other places with lower rents, you might have an extra bargaining chip.<ref name="rf12">http://www.moneycrashers.com/negotiate-lower-apartment-rent-payments/</ref> |
#*If you have done your research properly, you can show the landlord these options. | #*If you have done your research properly, you can show the landlord these options. | ||
#*If your research reveals that people are paying less for similar properties nearby, ask the landlord to explain why there is a difference, and see if they might be willing to change their price. | #*If your research reveals that people are paying less for similar properties nearby, ask the landlord to explain why there is a difference, and see if they might be willing to change their price. | ||
| − | #Get the deal in writing. If you successfully negotiate a reduced rental rate, discounts, or amenities, make sure these items are written into your lease.<ref | + | #Get the deal in writing. If you successfully negotiate a reduced rental rate, discounts, or amenities, make sure these items are written into your lease.<ref name="rf8" /> |
#*If your landlord denies this agreement in the future, you will have the official lease as proof. | #*If your landlord denies this agreement in the future, you will have the official lease as proof. | ||
#*Verbal agreements are not sufficient. | #*Verbal agreements are not sufficient. | ||
