How do you negotiate rent price?

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Joylush
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Re: How do you negotiate rent price?

Post by Joylush »

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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Sandtrap
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Re: How do you negotiate rent price?

Post by Sandtrap »

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?
You have nothing to lose by asking.

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?

Post by Vanguard User »

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.
There are multiple buildings here. Over 5,000 units I think.
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Re: How do you negotiate rent price?

Post by Vanguard User »

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. :confused

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]
Yes. I know I am blessed so far. Maybe because nothing major broke down where I live meaning less cost for owners.
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Re: How do you negotiate rent price?

Post by Vanguard User »

RedDog wrote: Mon Oct 25, 2021 7:23 pm I’m a landlord…it’s unreasonable to expect no rent increase over that period of time but you might be able to negotiate a bit by offering to sign a multi year lease.
I tried. Max was like 13 months contract.
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Re: How do you negotiate rent price?

Post by Vanguard User »

SCb&b wrote: Mon Oct 25, 2021 7:55 pm Offer to sign a 2 year lease extension.
They said no. 13 months is maximum. I would even do 5 years.
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Re: How do you negotiate rent price?

Post by Vanguard User »

Beensabu wrote: Mon Oct 25, 2021 8:37 pm
Vanguard User wrote: Mon Oct 25, 2021 4:11 pm My rent has been fixed since 2016 when I moved in to my apartment.
Wow. Lucky.

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.
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.
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Re: How do you negotiate rent price?

Post by Vanguard User »

cchrissyy wrote: Mon Oct 25, 2021 8:55 pm You've been lucky, and a good tenant, and that's why the deal lasted as long as it did. But no good deal lasts forever.
What’s considered a good tenant?
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Re: How do you negotiate rent price?

Post by Vanguard User »

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.
Property managers do the paperwork. There are many units to manage.
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Re: How do you negotiate rent price?

Post by Vanguard User »

Afty wrote: Mon Oct 25, 2021 9:04 pm
JoeRetire wrote: Mon Oct 25, 2021 5:16 pm
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?
Something like "Please Mr. Landlord, can I pay a lower rate?" might work. Probably not.

What leverage do you have?
You 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.
How did you negotiate?
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Re: How do you negotiate rent price?

Post by Vanguard User »

stan1 wrote: Mon Oct 25, 2021 9:06 pm Seems like no rent increase in five years is very lucky and shows that the landlord views you as a good tenant.

What percentage increase in the rent?
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?

Post by Vanguard User »

squirm wrote: Mon Oct 25, 2021 9:18 pm
Vanguard User wrote: Mon Oct 25, 2021 8:35 pm
squirm wrote: Mon Oct 25, 2021 5:39 pm
JoeRetire wrote: Mon Oct 25, 2021 5:27 pm
Vanguard User wrote: Mon Oct 25, 2021 5:18 pm

You raise the rent but they feel they got a better deal? How?
For example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".
Exactly.

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.
The landlord wins here.
Quality tenants and the landlord wins.
What’s a quality tenant?
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Re: How do you negotiate rent price?

Post by Vanguard User »

JoeRetire wrote: Tue Oct 26, 2021 6:52 am
Vanguard User wrote: Mon Oct 25, 2021 8:33 pm
JoeRetire wrote: Mon Oct 25, 2021 5:27 pm
Vanguard User wrote: Mon Oct 25, 2021 5:18 pm
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.
You raise the rent but they feel they got a better deal? How?
For example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".
Still a 20% increase.
Of course. But it's half of 40%. Such a deal!
That’s a tactic landlords use.
tesuzuki2002
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Re: How do you negotiate rent price?

Post by tesuzuki2002 »

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?

Post by Vanguard User »

JoeRetire wrote: Tue Oct 26, 2021 6:53 am
Afty wrote: Mon Oct 25, 2021 9:04 pm
JoeRetire wrote: Mon Oct 25, 2021 5:16 pm
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?
Something like "Please Mr. Landlord, can I pay a lower rate?" might work. Probably not.

What leverage do you have?
You 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.
Yup. Maybe the OP will get a reduced rate after having it stay the same for 5 years. Maybe not. Asking makes sense.
Reduced? Most likely not but I’ll take the fixed rate for few more years.
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Re: How do you negotiate rent price?

Post by Vanguard User »

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
I ask every year but no reduction. Property manager makes that decision right?
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Re: How do you negotiate rent price?

Post by Vanguard User »

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.
I ask every year.
econalex
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Re: How do you negotiate rent price?

Post by econalex »

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. :moneybag :moneybag :moneybag
Last edited by econalex on Wed Oct 27, 2021 1:59 pm, edited 1 time in total.
JD2775
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Re: How do you negotiate rent price?

Post by JD2775 »

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?

Post by Vanguard User »

Grt2bOutdoors wrote: Tue Oct 26, 2021 3:51 pm
Vanguard User wrote: Mon Oct 25, 2021 8:33 pm
JoeRetire wrote: Mon Oct 25, 2021 5:27 pm
Vanguard User wrote: Mon Oct 25, 2021 5:18 pm
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.
You raise the rent but they feel they got a better deal? How?
For example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".
Still a 20% increase.
As 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.

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.
I pay for renters insurance.
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Re: How do you negotiate rent price?

Post by Vanguard User »

6bquick wrote: Tue Oct 26, 2021 3:51 pm
Vanguard User wrote: Tue Oct 26, 2021 3:41 pm
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.
But then I am missing out on market gains on my index funds.
I'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?"
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.
I will wait to see if there is an increase at next renewal.
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Re: How do you negotiate rent price?

Post by Vanguard User »

tibbitts wrote: Tue Oct 26, 2021 4:05 pm
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?
You could provide your tax returns for every year since 2016, showing how your income has been decreasing every year.
They have been increasing.
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Re: How do you negotiate rent price?

Post by Vanguard User »

Grt2bOutdoors wrote: Tue Oct 26, 2021 4:20 pm
tibbitts wrote: Tue Oct 26, 2021 4:05 pm
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?
You could provide your tax returns for every year since 2016, showing how your income has been decreasing every year.
Yes, incentivize the landlord to do the bare minimum for the renter.
They are increasing but mother who lives with me if gets government benefits.
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Re: How do you negotiate rent price?

Post by Vanguard User »

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.
Sell what? I believe it’s a commercial property. Many buildings and units here. It’s only for rent.
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Re: How do you negotiate rent price?

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Sandtrap wrote: Tue Oct 26, 2021 6:08 pm
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?
You have nothing to lose by asking.

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🌺
I ask every renewal time.
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Re: How do you negotiate rent price?

Post by Vanguard User »

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...
Property managers do the work. Not owners. They have a maintenance crew here.
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Re: How do you negotiate rent price?

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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. :moneybag :moneybag :moneybag
What was your new rent at new place?
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Re: How do you negotiate rent price?

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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.
I know. It’s probably because my place is not vacant. 100% I think.
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Beensabu
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Re: How do you negotiate rent price?

Post by Beensabu »

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.
In some states, landlords can only increase the rent by 5% (or some other limit) every year.

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.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
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Re: How do you negotiate rent price?

Post by Vanguard User »

Beensabu wrote: Wed Oct 27, 2021 2:27 pm
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.
In some states, landlords can only increase the rent by 5% (or some other limit) every year.

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.
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Re: How do you negotiate rent price?

Post by Ramjet »

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
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Re: How do you negotiate rent price?

Post by JPH »

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?

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JPH wrote: Wed Oct 27, 2021 3:02 pm It would be a good time to ask the landlord to make a few repairs or improvements.
Yes. Like new carpet.
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Re: How do you negotiate rent price?

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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.
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Re: How do you negotiate rent price?

Post by stan1 »

Vanguard User wrote: Wed Oct 27, 2021 2:05 pm I ask every renewal time.
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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stan1 wrote: Wed Oct 27, 2021 8:15 pm
Vanguard User wrote: Wed Oct 27, 2021 2:05 pm I ask every renewal time.
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.
Not negotiated but I tried to bring the rent down but failed.
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Re: How do you negotiate rent price?

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Ramjet wrote: Wed Oct 27, 2021 2:38 pm 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
It’s more according to online.
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Re: How do you negotiate rent price?

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JPH wrote: Wed Oct 27, 2021 3:02 pm It would be a good time to ask the landlord to make a few repairs or improvements.
On what? And why?
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Re: How do you negotiate rent price?

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student wrote: Wed Oct 27, 2021 3:08 pm
JPH wrote: Wed Oct 27, 2021 3:02 pm It would be a good time to ask the landlord to make a few repairs or improvements.
Yes. Like new carpet.
They 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?

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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.
They are more expensive elsewhere.
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JoeRetire
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Re: How do you negotiate rent price?

Post by JoeRetire »

Vanguard User wrote: Wed Oct 27, 2021 1:54 pm
JoeRetire wrote: Tue Oct 26, 2021 6:52 am
Vanguard User wrote: Mon Oct 25, 2021 8:33 pm
JoeRetire wrote: Mon Oct 25, 2021 5:27 pm
Vanguard User wrote: Mon Oct 25, 2021 5:18 pm

You raise the rent but they feel they got a better deal? How?
For example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".
Still a 20% increase.
Of course. But it's half of 40%. Such a deal!
That’s a tactic landlords use.
That'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.
This isn't just my wallet. It's an organizer, a memory and an old friend.
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JoeRetire
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Re: How do you negotiate rent price?

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Vanguard User wrote: Wed Oct 27, 2021 1:55 pm
JoeRetire wrote: Tue Oct 26, 2021 6:53 am
Afty wrote: Mon Oct 25, 2021 9:04 pm
JoeRetire wrote: Mon Oct 25, 2021 5:16 pm
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?
Something like "Please Mr. Landlord, can I pay a lower rate?" might work. Probably not.

What leverage do you have?
You 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.
Yup. Maybe the OP will get a reduced rate after having it stay the same for 5 years. Maybe not. Asking makes sense.
Reduced? Most likely not but I’ll take the fixed rate for few more years.
You wrote: How do I negotiate to keep it the same and/or lower rate?

I think your chances are slim. But asking is the only way to find out. Good luck.
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JoeRetire
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Re: How do you negotiate rent price?

Post by JoeRetire »

Vanguard User wrote: Wed Oct 27, 2021 1:43 pmYes way under market rates. Initial promo price from 2016.
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.

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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student
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Re: How do you negotiate rent price?

Post by student »

Vanguard User wrote: Wed Oct 27, 2021 10:11 pm
student wrote: Wed Oct 27, 2021 3:08 pm
JPH wrote: Wed Oct 27, 2021 3:02 pm It would be a good time to ask the landlord to make a few repairs or improvements.
Yes. Like new carpet.
They installed new carpet when I moved in. What’s the benefit of this now?
If want new carpet, you can ask for it. It depends on you whether you want a new one.
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Vanguard User
Posts: 2191
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Location: Sugar Land, Texas

Re: How do you negotiate rent price?

Post by Vanguard User »

JoeRetire wrote: Thu Oct 28, 2021 6:30 am
Vanguard User wrote: Wed Oct 27, 2021 1:54 pm
JoeRetire wrote: Tue Oct 26, 2021 6:52 am
Vanguard User wrote: Mon Oct 25, 2021 8:33 pm
JoeRetire wrote: Mon Oct 25, 2021 5:27 pm

For example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".
Still a 20% increase.
Of course. But it's half of 40%. Such a deal!
That’s a tactic landlords use.
That'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.
Not me as a tenant.
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Vanguard User
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Re: How do you negotiate rent price?

Post by Vanguard User »

JoeRetire wrote: Thu Oct 28, 2021 6:33 am
Vanguard User wrote: Wed Oct 27, 2021 1:55 pm
JoeRetire wrote: Tue Oct 26, 2021 6:53 am
Afty wrote: Mon Oct 25, 2021 9:04 pm
JoeRetire wrote: Mon Oct 25, 2021 5:16 pm

Something like "Please Mr. Landlord, can I pay a lower rate?" might work. Probably not.

What leverage do you have?
You 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.
Yup. Maybe the OP will get a reduced rate after having it stay the same for 5 years. Maybe not. Asking makes sense.
Reduced? Most likely not but I’ll take the fixed rate for few more years.
You wrote: How do I negotiate to keep it the same and/or lower rate?

I think your chances are slim. But asking is the only way to find out. Good luck.
Ok.
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Vanguard User
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Re: How do you negotiate rent price?

Post by Vanguard User »

JoeRetire wrote: Thu Oct 28, 2021 6:36 am
Vanguard User wrote: Wed Oct 27, 2021 1:43 pmYes way under market rates. Initial promo price from 2016.
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.

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.
Promo is not expired. I still have few months in contract left. I fear they may offer a raise on rent.
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Vanguard User
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Re: How do you negotiate rent price?

Post by Vanguard User »

student wrote: Thu Oct 28, 2021 10:36 am
Vanguard User wrote: Wed Oct 27, 2021 10:11 pm
student wrote: Wed Oct 27, 2021 3:08 pm
JPH wrote: Wed Oct 27, 2021 3:02 pm It would be a good time to ask the landlord to make a few repairs or improvements.
Yes. Like new carpet.
They installed new carpet when I moved in. What’s the benefit of this now?
If want new carpet, you can ask for it. It depends on you whether you want a new one.
I was given new carpet everywhere when I moved in. All new appliances and new paint on walls.

How does this help me keep same rent and/or get lower rate?
Monsterflockster
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Re: How do you negotiate rent price?

Post by Monsterflockster »

Grt2bOutdoors wrote: Tue Oct 26, 2021 3:51 pm
Vanguard User wrote: Mon Oct 25, 2021 8:33 pm
JoeRetire wrote: Mon Oct 25, 2021 5:27 pm
Vanguard User wrote: Mon Oct 25, 2021 5:18 pm
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.
You raise the rent but they feel they got a better deal? How?
For example, you raise the rent by 40% and let them negotiate it down to 20%. Everyone is "happy".
Still a 20% increase.
As 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.

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.
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.
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JoeRetire
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Re: How do you negotiate rent price?

Post by JoeRetire »

Vanguard User wrote: Thu Oct 28, 2021 11:50 am
JoeRetire wrote: Thu Oct 28, 2021 6:36 am
Vanguard User wrote: Wed Oct 27, 2021 1:43 pmYes way under market rates. Initial promo price from 2016.
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.

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.
Promo is not expired. I still have few months in contract left. I fear they may offer a raise on rent.
Okay, it expires in a few months. Same thing.
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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