It's a landlord's market out there for a lot of you, but that doesn't mean you can't rent on your terms. The money experts at Stack Exchange chime in on new tentants negotiating for the first time and old tenants due for a rent increase.
How can I negotiate if I'm a new tenant? What if I'm renegotiating or defending myself against a proposed rent increase?
See the two original questions here and here.
If You're a New Tenant (Answered by bstpierre)
One of the best ways to win anynegotiation is to make an offer in which the other guy wins too. Give them something you don't care much about in exchange for something you do care about. (Assuming the "something" is of value to them.)
Some examples:
Prepay months in advance.
Longer lease.
Longer notice time built into lease termination agreement.
Do you have a car? Can you give up a parking space?
Are you a non-smoker? Can you promise not to smoke in the apartment? (This is an expense for the landlord when you move out.)
Do they allow cats and you don't have cats? Can you promise not to keep cats? (Another expense for the landlord.)
Probably unlikely to succeed in urban areas where landlords are pros, but in other areas: can you offer to do work for rent reduction? (E.g. you're handy and can help with maintenance, or you can mow the lawn, shovel the walk, paint, etc.)
If they have low occupancy, can you make a deal for referrals?
If You're Renegotiating (Answered by avernet)
Talking as a landlord, your main arguments are comps and the general increase/decrease of rent in your area. (And so are your landlord's arguments.)
How much do comparable units rent for? Look for similar units (same area, number of bedrooms and bathrooms, if your apartment complex is large enough even in the same apartment complex). In the US, Craigslist is a good tool for this. I'd even recommend you regularly check Craigslist, and keep track of all the comps you find, so you have historical data available for reference.
To find increases/decreases in your area, check theZillow Rent Index. For instance, as of this writing, San Francisco saw a 13.8% increase in the last year. If you're in a large city, look for the Zillow Rent Index in your specific neighborhood. If you were paying $1,000 last year, andrent prices generally increased by 10% in your area, an adjustment to $1,100 doesn't sound crazy.
And keep in mind: you want to stay, and most likely your landlord wants the same. It's in the interest of both of you to adjust the rent, either downward or upward, to match the current market value. Your landlord most likely doesn't want to rent the property to you for less than he could rent it to someone else, but doesn't want to increase the price above the market value, as you might leave and he then might not be able to rent the property at that high price anyway.
Disagree with the answers above? Have your own expertise to contribute? Check out the original posts, and see more questions like this at Personal Finance & Money Stack Exchange, a question and answer site for people who want to be financially literate. And if you've got your own money problem that requires a solution, ask a question. You'll get an answer. (And it's free.)
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