Finding the perfect apartment or home to rent is not easy. You have to consider various factors, like the neighborhood, property amenities, location, and more. Even if you find a location that meets your criteria, there is still one major hurdle to overcome: the rent. Knowing how to negotiate rent with your landlord is an essential skill for tenants.
This article is a primer on helping tenants get their preferred homes at affordable rent rates. From making the perfect offer on a free rental application form to finding ways to get landlords to agree to lower rent amounts, this is your guide to navigating the housing market.
Does Renting Apartments Have to Be Expensive?
Renters make up about one-third of the US housing market. They have jobs that require them to move often, they do not want the financial burden of home ownership, or their finances only allow them to lease properties.
Unfortunately, tenants often have to deal with rental rate increases at the end of every lease term. Over time, this can lead to tenants becoming cost-burdened with rent rates. According to the Joint Center for Housing Studies of Harvard University, more than half of all renters (22.4 million households) spent over 30% of their income on rent.
The average rent for a one-bedroom apartment in the US is $1,535 per month. Family-friendly homes with three bedrooms are considerably more expensive, averaging $2,197 monthly. Of course, rents across the country fluctuate regionally and seasonally. Tenants need a rent negotiation strategy to get the best rates possible.
Six Tips for Negotiating Rent Rates with Landlords
CNBC reported on a survey that found only 28% of renters attempt to negotiate with their landlords during lease renewal. Of these renters, one out of every four (25%) was successful.
With the right approach and strategy, you can get a better rent rate from your landlord. All it takes is a little preparation and willingness to find a mutually beneficial compromise. If your lease term is ending and you wish to renew, or if you are in the housing market looking to rent your first independent home, these tips will be very useful during rent negotiations.
1. Prepare a strong rental application
A rental application is a form that landlords or property managers hand out to interested renters. The prospective tenant must fill it out and submit it to be selected for the property.
Include all relevant details on your rental application, including your full name and contact information, employment details, photo ID, monthly income, and personal references. Landlords will favor tenants who are forthcoming in these forms.
2. Research the market and neighborhood
There’s no reason to unquestionably accept your landlord’s proposal for rent rates. Compare the proposed amount to rent rates for similar properties in your area. You may be able to find a similarly sized apartment for a lower rent rate or an even bigger home at the rate your landlord is asking for your current rental.
3. Leverage different properties
Knowing what other landlords are charging can be useful when trying to get a better rate from yours. Letting your landlord know that you have the option to move can lead to a more affordable rental amount in a bid for you to renew your lease.
4. Choose the right time
In the US, spring and summer are the peak seasons when landlords charge the highest rent. Try to avoid signing a new lease agreement at this time so you can get the best rental rate.
5. Explore non-monetary concessions
Landlords may refuse to budge when it comes to the rent amount. That doesn’t mean that there’s nothing to be gained from negotiating. Many renters overlook non-monetary concessions that could add value to their living situation.
It’s worth asking for extra concessions, like an additional parking space, a repaint, or new kitchen fixtures. These can vastly improve your experience of staying in a home and make the increased rent worth the price.
6. Sell yourself as a tenant
Landlords are more open to discussing rent rates with tenants they already know. If you’ve been a model tenant during your first lease period, you have a better chance of successfully negotiating rent in the following years.
If you’re trying to negotiate rent for a new home, demonstrate that you will be a great tenant who will abide by the terms of the lease agreement and make all payments on time.
Conclusion
Remember that you have power over your rental rates, even as a tenant. Be polite and accommodating when broaching the topic of negotiating rent with your landlord. In most cases, you might be pleasantly surprised by your landlord’s willingness to reach an agreement.
Following the tips in this article will make negotiating rent with your landlord much smoother the next time.
