Can I Negotiate My Rent?

In today’s challenging housing market and economic climate, more and more people are continuing to rent rather than buy. While negotiating your rent is possible, it might not be easy. Your ability to negotiate your rent with a landlord may depend on many different factors, including the local rental market, rental inventory availability, housing costs, and the type of landlord you’re trying to rent from.

For example, if you’re looking to score a discounted deal in a tight market with rising rents and limited availability, you may be out of luck, especially where rental units are moving fast. In some markets where rentals are getting snatched up the same day they’re listed—sometimes even sight unseen—there also may not be any time for negotiations.

If you’re thinking about renting from a property management company or real estate investment trust (REIT), you may also find less flexibility since their rental rates could be set in stone. However, haggling with a private landlord may have some wiggle room for negotiations. In some cases, being an existing tenant who’s up for renewal may allow you the option to negotiate, but it could also backfire if your landlord is hoping to get a new tenant that’s willing to pay more.

How to Negotiate Your Rent

If you’re thinking about negotiating your rent, it’s key to approach the process as you would any other type of business negotiations. Successful negotiations are about creating a win-win situation for both parties and may involve some compromise.

Do Your Research

If you’re not under any pressure to sign a lease immediately and are shopping around for a place to rent, consider taking the time to do some research first. Checking out the local market is a good first step to better understand what the going rate for rentals is.

For example, if you’re looking for a one-bedroom apartment, compare prices in various neighborhoods as well from both private landlords and property management companies. You can use rental listing sites to do this, talk with local real estate agents, or contact property management companies you may be interested in renting from. When factoring in costs, be sure to include amenities such as parking, recreational facilities, and any other features a rental may have like storage, community areas, included utilities, fitness center, lawn care, snow removal, and the ability to have pets.

It’s also a good idea to watch the market to see how quickly inventory is moving. For example, if there is a complex you’re interested in moving to, you may be able to watch listings online to see how quickly they disappear after being listed for rent. Or you can check out guides and reports from housing market experts to get a handle on average prices and trends.

Build a Case

Being a landlord is a business, whether it’s one property or hundreds. This means that landlords want to make money, not lose it, and they’ll want to get the best market price for their rental. When applying for an apartment or rental house, you’re likely already competing against other renters for the same unit. And if those renters are willing to offer the landlord full price, or other concessions you’re not able to, you may not have much negotiating power.

However, with the right backup to make your case, you may have a shot. Here are some ideas to consider:

• Highlight your qualifications: If you can prove to the landlord that you’re a more responsible tenant than other applicants, you may be able to get an edge. While there are laws to prevent discrimination based on certain factors like your race, sex, or religion, showcasing your solid employment history or excellent credit to a landlord can help you stand out. Other factors like carrying extra renters insurance may also make you a more attractive rental candidate.
• Get reference letters: If you’ve rented before, consider submitting reference letters from past landlords or neighbors. You can also include your own letter to the landlord letting them know why you’re the best fit for their place.
• Tell them about your lifestyle: Maybe you travel often and don’t plan to be home much—which could make you an ideal tenant if you’re sharing an owner-occupied duplex and they like it quiet. Or working from home could be a plus if the landlord likes to have the apartment regularly occupied and thus at potentially less risk for theft or vandalism.

Every landlord and property management company will likely have different decision-making factors. So when building your case, it’s important to factor in what you think the landlord may be looking for in their “ideal tenant.”

Consider Concessions

Successful negotiations typically benefit all parties involved. To get what you want—in this case, a break on your rent—you may have to make some sacrifices. When thinking about what concessions you can offer in order to convince a landlord to give you a deal on rent, don’t be afraid to get creative. Consider your unique situation and what you may be able to bring to the table in exchange for discounted rent.

• Sign a longer lease: A six-month lease is typically more expensive than a 12-month lease, while month-to-month rentals are usually the most expensive. If possible, try to get a 12-month lease at a minimum. But, if you’re willing to sign a longer lease, like 18 months, you may be able to boost your negotiating power. Having a tenant longer can save the landlord from having to pay extra costs to turn over the apartment, such as cleaning, painting, advertising, and credit check fees.
• Pay in advance: Another option is to offer to pay for more than one month upfront. Not everyone can swing this financially, especially paying an entire year in advance, but if you’re able to cover the cost, it could be worth asking the landlord if they’d offer any kind of discount for prepayment.
• Exchange work for a discount: If you’re handy with a paintbrush, consider offering to save your landlord the cost of repainting the apartment when you move in or out. Or if you’re really skilled, you may even be able to offer to renovate the apartment or do minor updates like installing new carpets, building a deck, or other property improvements. In exchange, you can ask the landlord to knock down the rent a bit or give your first month free. Other options may include offering to handle lawn care or snow removal in exchange for a discount or asking what other needs the landlord may have.

How to Deal With Landlord Rejection

While it can be frustrating to not get the rental deal you were hoping for, you may have some other options if landlord negotiations don’t quite go your way. Here are some ideas:

• Ask for concessions: Whether you’re a new tenant or renewing your existing lease, if the rental unit isn’t quite up to par for the asking price, you can always ask the landlord to make some updates. From new carpets to appliances, you may be able to get something in return for paying full price.
• Find a different place: If you’re already in a place you love and can’t afford the renewal rent rate due to increases, you may actually be able to find a cheaper place as a new tenant. But if you’re simply priced out of rentals you wish you could afford, consider scaling back and looking at different options that fit your budget.
• Consider a roommate: While you may not be able to afford a rental on your own at full price, having someone to split the cost with could help you out. Just be sure to talk to your landlord about their roommate policy, especially when it comes to having other tenants on a lease.

How Paying Rent Can Boost Your Credit

No matter what your rent costs, paying rent on time can help boost your credit. While monthly rental payments aren’t typically reported to the three major credit bureaus, there are programs that can help you get credit for the rent you pay.

Renters who pay their rent online can use Experian Boost® to have their payments reported to Experian. This free feature gives you credit for on-time payments of bills that don’t normally appear on your credit reports, such as cellphone payments, streaming services, and rent, potentially increasing your FICO® Score.

The Bottom Line

Getting a deal on rent isn’t easy, so it’s a good idea to at least try to negotiate with the landlord—even if you have to make some concessions. Because landlords can check your credit reports before approving your application, it’s important to monitor your credit and make any changes necessary to improve your credit score and give you the best bargaining position possible.

For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. Our team of experts is here to help you navigate the complexities of the housing market and find the best solutions for your financial needs.