How do you negotiate rent price?
Re: How do you negotiate rent price?
Consider yourself lucky to have had no increases in the past five years. That’s bad practice on the landlord’s part. And in this market you’d best not complain or the landlord may very well just sell.
I have long term tenants and typically have kept increases between 1%-3% a year. But rents are up 40% in the last two years alone as well as costs for everything else (roofs, AC, plumbing, taxes, insurance etc…). I recently sent out a dozen increase notices which ranged from 6%-10% and the homes still are a minimum of 25% below the going rate. If anyone balked they would be told they are free to move without penalty. Funny thing is everyone was just relieved the increases weren’t higher and that I wasn’t deciding to sell because they all know they are still getting a great deal.
I have long term tenants and typically have kept increases between 1%-3% a year. But rents are up 40% in the last two years alone as well as costs for everything else (roofs, AC, plumbing, taxes, insurance etc…). I recently sent out a dozen increase notices which ranged from 6%-10% and the homes still are a minimum of 25% below the going rate. If anyone balked they would be told they are free to move without penalty. Funny thing is everyone was just relieved the increases weren’t higher and that I wasn’t deciding to sell because they all know they are still getting a great deal.
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Re: How do you negotiate rent price?
You have nothing to lose by asking.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment. But it may go up come next renewal for 12 months contract.
How do I negotiate to keep it the same and/or lower rate?
Rent is not a negotiable item in general. Count your blessings and savings for having the same low rent for so long.
Take the win.
j
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Re: How do you negotiate rent price?
There are multiple buildings here. Over 5,000 units I think.fortunefavored wrote: ↑Mon Oct 25, 2021 7:08 pm If it is a huge, corporate owned complex.. zero chance. They have a lot of math behind churning units for maximum extraction of rent.
If it is a small owner/landlord, you can have some chance with pleading hard luck ("I was on furlow/took a paycut/etc" - whatever your situation is) and maybe they'll reduce the increase slightly less.
I had a great land lord for years who valued me as a tenant, and he rarely passed on an increase. He even lowered it once (during the dotbomb) when I asked.
But if it is a corporate complex, no way.
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Re: How do you negotiate rent price?
Yes. I know I am blessed so far. Maybe because nothing major broke down where I live meaning less cost for owners.Supergrover wrote: ↑Mon Oct 25, 2021 7:22 pm Five years at the same rent? I value good tenants, too, but 5 years is too long! Be happy you had an extended period with no increase.
i have tenants now...no increase in 3 years. They are A+ tenants, but I plan to raise the rent maybe $30. [my state regulates increases]
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Re: How do you negotiate rent price?
What do you mean no rent increase caps in Texas? So I need to be continue being low maintenance? I guess that’s the main reason? Yes way under market rates. Initial promo price from 2016.Beensabu wrote: ↑Mon Oct 25, 2021 8:37 pmWow. Lucky.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment.
No rent increase caps in Texas. So you've been really super lucky.
You're never late and you're low maintenance, so that's probably why you got so lucky for so long. Sounds like your rent is probably way under market by now, so that's probably not going to work anymore. If you can get away with a 20% increase or less after 5 years with none at all, that's not terrible. You're still better off than if it had gone up incrementally every year.
Start looking for another place a couple months before renewal. See how much stuff costs. See if you can even find places that meet your specs. You might be surprised. If the rent increase is over what comparable rentals would cost you and there are lots of options out there, then move. If it's under, then lock that in with a longer lease.
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Re: How do you negotiate rent price?
Property managers do the paperwork. There are many units to manage.JoMoney wrote: ↑Mon Oct 25, 2021 9:03 pm See if you can find comparable place(s) in your area renting for less.
If you find some, tell your landlord you'd like to stay but are considering these other comparable places renting for less. If landlord won't budge, move.
If you can't find places renting for less, you're probably out of luck. The market is what it is, and if your area is anything like where I'm at rents have jumped quite a bit over the past year and large apartment complexes are only taking names for waiting lists if something opens up.
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Re: How do you negotiate rent price?
How did you negotiate?Afty wrote: ↑Mon Oct 25, 2021 9:04 pmYou joke but we successfully negotiated rent several times with basically that. Your leverage is that finding a new tenant can be slow/expensive and the landlord is rolling the dice with whether a new tenant is going to pay rent on time, not destroy the apartment, not harass them for every little thing, etc. It doesn’t hurt to ask.JoeRetire wrote: ↑Mon Oct 25, 2021 5:16 pmSomething like "Please Mr. Landlord, can I pay a lower rate?" might work. Probably not.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment. But it may go up come next renewal for 12 months contract.
How do I negotiate to keep it the same and/or lower rate?
What leverage do you have?
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Re: How do you negotiate rent price?
None so far but few months from now if I am offered a renewal and increase (whatever that maybe). It can be decision time.
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Re: How do you negotiate rent price?
What’s a quality tenant?squirm wrote: ↑Mon Oct 25, 2021 9:18 pmQuality tenants and the landlord wins.Vanguard User wrote: ↑Mon Oct 25, 2021 8:35 pmThe landlord wins here.squirm wrote: ↑Mon Oct 25, 2021 5:39 pmExactly.JoeRetire wrote: ↑Mon Oct 25, 2021 5:27 pmFor example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".Vanguard User wrote: ↑Mon Oct 25, 2021 5:18 pm
You raise the rent but they feel they got a better deal? How?
My tenants know they're getting a great deal compared to most other places. I value good quality tenants, and reward them by underpricing comparable rents.
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Re: How do you negotiate rent price?
That’s a tactic landlords use.JoeRetire wrote: ↑Tue Oct 26, 2021 6:52 amOf course. But it's half of 40%. Such a deal!Vanguard User wrote: ↑Mon Oct 25, 2021 8:33 pmStill a 20% increase.JoeRetire wrote: ↑Mon Oct 25, 2021 5:27 pmFor example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".Vanguard User wrote: ↑Mon Oct 25, 2021 5:18 pmYou raise the rent but they feel they got a better deal? How?squirm wrote: ↑Mon Oct 25, 2021 4:58 pm Hehe, that's funny, negotiate a decrease in rent in this market... Good luck with that.
Anyways, some of my tenants "negotiate". So i raise the rent more to offset their "negotiation". It makes them feel they got a better deal.
On the other hand, most of them are good tenants and already are getting a great rent deal compared to similar places.
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Re: How do you negotiate rent price?
I used to do all work at my rental for my landlord....
roofing, electrical, plumbing, yard work... etc.. I handle the house thru and thru... It worked out for 7 years... It really was a great deal. I'll never live that cheaply again.
As the housing market keep burning... my Landlord decided it was time to sell and he made a nice $250K profit. He got his big pay day and I made out with inexpensive living for many years.
What can you offer for services?
I compensate my tenants for work they do around my rental...
roofing, electrical, plumbing, yard work... etc.. I handle the house thru and thru... It worked out for 7 years... It really was a great deal. I'll never live that cheaply again.
As the housing market keep burning... my Landlord decided it was time to sell and he made a nice $250K profit. He got his big pay day and I made out with inexpensive living for many years.
What can you offer for services?
I compensate my tenants for work they do around my rental...
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Re: How do you negotiate rent price?
Reduced? Most likely not but I’ll take the fixed rate for few more years.JoeRetire wrote: ↑Tue Oct 26, 2021 6:53 amYup. Maybe the OP will get a reduced rate after having it stay the same for 5 years. Maybe not. Asking makes sense.Afty wrote: ↑Mon Oct 25, 2021 9:04 pmYou joke but we successfully negotiated rent several times with basically that. Your leverage is that finding a new tenant can be slow/expensive and the landlord is rolling the dice with whether a new tenant is going to pay rent on time, not destroy the apartment, not harass them for every little thing, etc. It doesn’t hurt to ask.JoeRetire wrote: ↑Mon Oct 25, 2021 5:16 pmSomething like "Please Mr. Landlord, can I pay a lower rate?" might work. Probably not.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment. But it may go up come next renewal for 12 months contract.
How do I negotiate to keep it the same and/or lower rate?
What leverage do you have?
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Re: How do you negotiate rent price?
I ask every year but no reduction. Property manager makes that decision right?muffins14 wrote: ↑Tue Oct 26, 2021 7:04 am I usually just ask for lower rent. It’s the same dance as a job offer negotiation.
“Blah blah, I’m a great tenant, the market looks like X, blah blah, I’m willing to do Y. Will you be ok with $X new monthly rent?”
Sometimes it works, sometimes no. Likely depends a lot on whether it’s a bit REIT-managed building or a smaller independent landlord building
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Re: How do you negotiate rent price?
I ask every year.Jags4186 wrote: ↑Tue Oct 26, 2021 7:10 am You ask nicely. If they say no you can give your notice to leave, but of course you then need to be ready to move out and leave.
Switching tenants costs the landlord at least 1 month’s rent and the price to spruce up the place. If you’ve been there 5 years he’ll probably at least have to paint the walls. Let’s say vacancy and improvements cost 10% of the annual rent of the unit. Is the landlord able to increase the rent more than 10% and easily find a new tenant? If so, he’ll be happy to let you walk.
Re: How do you negotiate rent price?
During the height of COVID last year in August, my then landlord decided to raise the rent from $2650 to $2800 (2-bedroom apt split between 2 roommates), so a more than 5% raise. I promptly moved out. A new tenant promptly moved in at the new rate. Minimal effort on part of the landlord.
Last edited by econalex on Wed Oct 27, 2021 1:59 pm, edited 1 time in total.
Re: How do you negotiate rent price?
This post seems completely out of touch with reality. You haven't had a rent increase in 5 years and you are already thinking about counter offers once the rent finally does change? You should count yourself lucky that your landlord has been that generous. I feel great when I go 1-2 years without an increase, I can't imagine going 5. Lucky you.
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Re: How do you negotiate rent price?
I pay for renters insurance.Grt2bOutdoors wrote: ↑Tue Oct 26, 2021 3:51 pmAs a former landlord let me clue you in on the not so apparent things to a renter: 1) taxes always trend up 2)the cost of property insurance is always up and over the past 2 years in particular the costs are going up close to double digits 3) the cost for handyman, general maintenance and upkeep staff is going up due to wage increases and higher benefits expenses (think healthcare), 4) while you may reside inside the apartment the external and exterior shell of the home or building requires maintenance and repair to keep it in good general condition and 5) the landlord may need to plan in advance for a major repair that you aren’t aware of. They plan by allocation of part of the rental revenue each month to pay for it.Vanguard User wrote: ↑Mon Oct 25, 2021 8:33 pmStill a 20% increase.JoeRetire wrote: ↑Mon Oct 25, 2021 5:27 pmFor example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".Vanguard User wrote: ↑Mon Oct 25, 2021 5:18 pmYou raise the rent but they feel they got a better deal? How?squirm wrote: ↑Mon Oct 25, 2021 4:58 pm Hehe, that's funny, negotiate a decrease in rent in this market... Good luck with that.
Anyways, some of my tenants "negotiate". So i raise the rent more to offset their "negotiation". It makes them feel they got a better deal.
On the other hand, most of them are good tenants and already are getting a great rent deal compared to similar places.
And finally, the landlord is entitled to a tad bit of profit margin on top of all those costs including tying up their capital in the building space with no easy method of accessing it.
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Re: How do you negotiate rent price?
I will wait to see if there is an increase at next renewal.6bquick wrote: ↑Tue Oct 26, 2021 3:51 pmI'm failing to see the relevance in this statement. your original question was "How do I negotiate to keep it the same and/or lower rate?"Vanguard User wrote: ↑Tue Oct 26, 2021 3:41 pmBut then I am missing out on market gains on my index funds.chw wrote: ↑Tue Oct 26, 2021 6:14 am Offering to prepay the rent is about the only leverage you may have. Unless market rents have decreased in your general area, and the cost of moving is worth getting a cheaper apartment, I would wait out what the landlord does. Another aspect to consider is what is the current vacancy rate for the market. If over 15-20% you may have some leverage to “negotiate”, unless your apartment would have strong appeal to prospective renters.
it's been answered by a lot of landlords, already... in this market, you don't. Count your blessings it's been unchanged for so long, accept higher rent, or move.
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Re: How do you negotiate rent price?
They have been increasing.tibbitts wrote: ↑Tue Oct 26, 2021 4:05 pmYou could provide your tax returns for every year since 2016, showing how your income has been decreasing every year.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment. But it may go up come next renewal for 12 months contract.
How do I negotiate to keep it the same and/or lower rate?
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Re: How do you negotiate rent price?
They are increasing but mother who lives with me if gets government benefits.Grt2bOutdoors wrote: ↑Tue Oct 26, 2021 4:20 pmYes, incentivize the landlord to do the bare minimum for the renter.tibbitts wrote: ↑Tue Oct 26, 2021 4:05 pmYou could provide your tax returns for every year since 2016, showing how your income has been decreasing every year.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment. But it may go up come next renewal for 12 months contract.
How do I negotiate to keep it the same and/or lower rate?
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Re: How do you negotiate rent price?
Sell what? I believe it’s a commercial property. Many buildings and units here. It’s only for rent.Joylush wrote: ↑Tue Oct 26, 2021 5:13 pm Consider yourself lucky to have had no increases in the past five years. That’s bad practice on the landlord’s part. And in this market you’d best not complain or the landlord may very well just sell.
I have long term tenants and typically have kept increases between 1%-3% a year. But rents are up 40% in the last two years alone as well as costs for everything else (roofs, AC, plumbing, taxes, insurance etc…). I recently sent out a dozen increase notices which ranged from 6%-10% and the homes still are a minimum of 25% below the going rate. If anyone balked they would be told they are free to move without penalty. Funny thing is everyone was just relieved the increases weren’t higher and that I wasn’t deciding to sell because they all know they are still getting a great deal.
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Re: How do you negotiate rent price?
I ask every renewal time.Sandtrap wrote: ↑Tue Oct 26, 2021 6:08 pmYou have nothing to lose by asking.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment. But it may go up come next renewal for 12 months contract.
How do I negotiate to keep it the same and/or lower rate?
Rent is not a negotiable item in general. Count your blessings and savings for having the same low rent for so long.
Take the win.
j
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Re: How do you negotiate rent price?
Property managers do the work. Not owners. They have a maintenance crew here.tesuzuki2002 wrote: ↑Wed Oct 27, 2021 1:54 pm I used to do all work at my rental for my landlord....
roofing, electrical, plumbing, yard work... etc.. I handle the house thru and thru... It worked out for 7 years... It really was a great deal. I'll never live that cheaply again.
As the housing market keep burning... my Landlord decided it was time to sell and he made a nice $250K profit. He got his big pay day and I made out with inexpensive living for many years.
What can you offer for services?
I compensate my tenants for work they do around my rental...
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Re: How do you negotiate rent price?
What was your new rent at new place?econalex wrote: ↑Wed Oct 27, 2021 1:58 pm During the height of COVID last year in August, my then landlord decided to raise the rent from $2650 to $2800 (2-bedroom apt split between 2 roommates), so a more than 5% raise. I promptly moved out. A new tenant promptly moved in at the new rate. Minimal effort on part of the landlord.
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Re: How do you negotiate rent price?
I know. It’s probably because my place is not vacant. 100% I think.JD2775 wrote: ↑Wed Oct 27, 2021 1:58 pm This post seems completely out of touch with reality. You haven't had a rent increase in 5 years and you are already thinking about counter offers once the rent finally does change? You should count yourself lucky that your landlord has been that generous. I feel great when I go 1-2 years without an increase, I can't imagine going 5. Lucky you.
Re: How do you negotiate rent price?
In some states, landlords can only increase the rent by 5% (or some other limit) every year.Vanguard User wrote: ↑Wed Oct 27, 2021 1:43 pm What do you mean no rent increase caps in Texas? So I need to be continue being low maintenance? I guess that’s the main reason? Yes way under market rates. Initial promo price from 2016.
There are no such limits in Texas. They can increase the rent by 20% a year if they want to. There's nothing stopping them, as long as they can find tenants who will pay.
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Re: How do you negotiate rent price?
Beensabu wrote: ↑Wed Oct 27, 2021 2:27 pmIn some states, landlords can only increase the rent by 5% (or some other limit) every year.Vanguard User wrote: ↑Wed Oct 27, 2021 1:43 pm What do you mean no rent increase caps in Texas? So I need to be continue being low maintenance? I guess that’s the main reason? Yes way under market rates. Initial promo price from 2016.
There are no such limits in Texas. They can increase the rent by 20% a year if they want to. There's nothing stopping them, as long as they can find tenants who will pay.
Ok.
Re: How do you negotiate rent price?
Find what they are offering new tenants and present it to them
Provide evidence that you are a current, low maintenance tenant who pays on time
There should be some kind of reduction at least
Provide evidence that you are a current, low maintenance tenant who pays on time
There should be some kind of reduction at least
Re: How do you negotiate rent price?
It would be a good time to ask the landlord to make a few repairs or improvements.
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Re: How do you negotiate rent price?
The only real negotiating leverage you have is if you can find comparable places on the market that are cheaper than what the landlord wants to raise it to. Show the listings to the landlord. I’ve had family members use that technique and it worked.
If those places exist and the landlord still won’t negotiate, then I would suggest moving into one of them.
If market rents are similar to what the landlord wants to charge, then nothing is likely to work.
If those places exist and the landlord still won’t negotiate, then I would suggest moving into one of them.
If market rents are similar to what the landlord wants to charge, then nothing is likely to work.
Re: How do you negotiate rent price?
If you've negotiated five years of no rent increases I'd say you should just keep doing what you are doing. No need for additional tips, we need tips from you.
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Re: How do you negotiate rent price?
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Re: How do you negotiate rent price?
They are more expensive elsewhere.quantAndHold wrote: ↑Wed Oct 27, 2021 8:12 pm The only real negotiating leverage you have is if you can find comparable places on the market that are cheaper than what the landlord wants to raise it to. Show the listings to the landlord. I’ve had family members use that technique and it worked.
If those places exist and the landlord still won’t negotiate, then I would suggest moving into one of them.
If market rents are similar to what the landlord wants to charge, then nothing is likely to work.
Re: How do you negotiate rent price?
That's the whole point. user "squirm" is a landlord.Vanguard User wrote: ↑Wed Oct 27, 2021 1:54 pmThat’s a tactic landlords use.JoeRetire wrote: ↑Tue Oct 26, 2021 6:52 amOf course. But it's half of 40%. Such a deal!Vanguard User wrote: ↑Mon Oct 25, 2021 8:33 pmStill a 20% increase.JoeRetire wrote: ↑Mon Oct 25, 2021 5:27 pmFor example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".Vanguard User wrote: ↑Mon Oct 25, 2021 5:18 pm
You raise the rent but they feel they got a better deal? How?
So i raise the rent more to offset their "negotiation". It makes them feel they got a better deal.
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Re: How do you negotiate rent price?
You wrote: How do I negotiate to keep it the same and/or lower rate?Vanguard User wrote: ↑Wed Oct 27, 2021 1:55 pmReduced? Most likely not but I’ll take the fixed rate for few more years.JoeRetire wrote: ↑Tue Oct 26, 2021 6:53 amYup. Maybe the OP will get a reduced rate after having it stay the same for 5 years. Maybe not. Asking makes sense.Afty wrote: ↑Mon Oct 25, 2021 9:04 pmYou joke but we successfully negotiated rent several times with basically that. Your leverage is that finding a new tenant can be slow/expensive and the landlord is rolling the dice with whether a new tenant is going to pay rent on time, not destroy the apartment, not harass them for every little thing, etc. It doesn’t hurt to ask.JoeRetire wrote: ↑Mon Oct 25, 2021 5:16 pmSomething like "Please Mr. Landlord, can I pay a lower rate?" might work. Probably not.Vanguard User wrote: ↑Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment. But it may go up come next renewal for 12 months contract.
How do I negotiate to keep it the same and/or lower rate?
What leverage do you have?
I think your chances are slim. But asking is the only way to find out. Good luck.
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Re: How do you negotiate rent price?
Ah, now I see! You were given a below-market introductory promo price 5 years ago. And now the promo has expired in your 5,000 unit apartment complex that is at or close to 100% occupancy.Vanguard User wrote: ↑Wed Oct 27, 2021 1:43 pmYes way under market rates. Initial promo price from 2016.
All that tells me that you have absolutely no chance to keep your promo rate.
Ask anyway, but be prepared to pay more. Hopefully, it's not too much more. Likely it will be at the market rate for your locale.
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Re: How do you negotiate rent price?
If want new carpet, you can ask for it. It depends on you whether you want a new one.Vanguard User wrote: ↑Wed Oct 27, 2021 10:11 pmThey installed new carpet when I moved in. What’s the benefit of this now?
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Re: How do you negotiate rent price?
Not me as a tenant.JoeRetire wrote: ↑Thu Oct 28, 2021 6:30 amThat's the whole point. user "squirm" is a landlord.
So i raise the rent more to offset their "negotiation". It makes them feel they got a better deal.
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Re: How do you negotiate rent price?
Ok.JoeRetire wrote: ↑Thu Oct 28, 2021 6:33 amYou wrote: How do I negotiate to keep it the same and/or lower rate?Vanguard User wrote: ↑Wed Oct 27, 2021 1:55 pmReduced? Most likely not but I’ll take the fixed rate for few more years.JoeRetire wrote: ↑Tue Oct 26, 2021 6:53 amYup. Maybe the OP will get a reduced rate after having it stay the same for 5 years. Maybe not. Asking makes sense.Afty wrote: ↑Mon Oct 25, 2021 9:04 pmYou joke but we successfully negotiated rent several times with basically that. Your leverage is that finding a new tenant can be slow/expensive and the landlord is rolling the dice with whether a new tenant is going to pay rent on time, not destroy the apartment, not harass them for every little thing, etc. It doesn’t hurt to ask.
I think your chances are slim. But asking is the only way to find out. Good luck.
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Re: How do you negotiate rent price?
Promo is not expired. I still have few months in contract left. I fear they may offer a raise on rent.JoeRetire wrote: ↑Thu Oct 28, 2021 6:36 amAh, now I see! You were given a below-market introductory promo price 5 years ago. And now the promo has expired in your 5,000 unit apartment complex that is at or close to 100% occupancy.Vanguard User wrote: ↑Wed Oct 27, 2021 1:43 pmYes way under market rates. Initial promo price from 2016.
All that tells me that you have absolutely no chance to keep your promo rate.
Ask anyway, but be prepared to pay more. Hopefully, it's not too much more. Likely it will be at the market rate for your locale.
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Re: How do you negotiate rent price?
I was given new carpet everywhere when I moved in. All new appliances and new paint on walls.student wrote: ↑Thu Oct 28, 2021 10:36 amIf want new carpet, you can ask for it. It depends on you whether you want a new one.Vanguard User wrote: ↑Wed Oct 27, 2021 10:11 pmThey installed new carpet when I moved in. What’s the benefit of this now?
How does this help me keep same rent and/or get lower rate?
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Re: How do you negotiate rent price?
This was the reasoning in the form letter we always got when our annual lease came up. In a 4 year span rent increased 10k annually. I don't think expenses went up that much. We got tired of the increases so bought. Now our "rent" only goes down if we decide to refinance.Grt2bOutdoors wrote: ↑Tue Oct 26, 2021 3:51 pmAs a former landlord let me clue you in on the not so apparent things to a renter: 1) taxes always trend up 2)the cost of property insurance is always up and over the past 2 years in particular the costs are going up close to double digits 3) the cost for handyman, general maintenance and upkeep staff is going up due to wage increases and higher benefits expenses (think healthcare), 4) while you may reside inside the apartment the external and exterior shell of the home or building requires maintenance and repair to keep it in good general condition and 5) the landlord may need to plan in advance for a major repair that you aren’t aware of. They plan by allocation of part of the rental revenue each month to pay for it.Vanguard User wrote: ↑Mon Oct 25, 2021 8:33 pmStill a 20% increase.JoeRetire wrote: ↑Mon Oct 25, 2021 5:27 pmFor example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".Vanguard User wrote: ↑Mon Oct 25, 2021 5:18 pmYou raise the rent but they feel they got a better deal? How?squirm wrote: ↑Mon Oct 25, 2021 4:58 pm Hehe, that's funny, negotiate a decrease in rent in this market... Good luck with that.
Anyways, some of my tenants "negotiate". So i raise the rent more to offset their "negotiation". It makes them feel they got a better deal.
On the other hand, most of them are good tenants and already are getting a great rent deal compared to similar places.
And finally, the landlord is entitled to a tad bit of profit margin on top of all those costs including tying up their capital in the building space with no easy method of accessing it.
Re: How do you negotiate rent price?
Okay, it expires in a few months. Same thing.Vanguard User wrote: ↑Thu Oct 28, 2021 11:50 amPromo is not expired. I still have few months in contract left. I fear they may offer a raise on rent.JoeRetire wrote: ↑Thu Oct 28, 2021 6:36 amAh, now I see! You were given a below-market introductory promo price 5 years ago. And now the promo has expired in your 5,000 unit apartment complex that is at or close to 100% occupancy.Vanguard User wrote: ↑Wed Oct 27, 2021 1:43 pmYes way under market rates. Initial promo price from 2016.
All that tells me that you have absolutely no chance to keep your promo rate.
Ask anyway, but be prepared to pay more. Hopefully, it's not too much more. Likely it will be at the market rate for your locale.
Don't fear it. Just be prepared when it happens. Be happy that you have paid way under market rates for 5 years!
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