How To Negotiate Rent Down In Any Situation
It’s not even hard.
I’ve lived in New York City for 16 years, and I’ve asked for cheaper rent each time I’ve signed a lease. Three out of five landlords have said, “sure,” and those odds are good enough to keep me asking! Since one of our biggest fixed expenses is rent, getting it knocked down a few hundred dollars adds up to serious savings over the course of a few years. If you stay at an apartment for awhile and the rent isn’t raised, you can save a lot of money. For example, I saved $9,000 over 8 years with a one-minute conversation about cheaper rent.
That said, no many how many times I’ve asked, I always feel weird and I assume I’ll hear “nope.” But you miss all the shots you never take! Ready to take a crack at negotiating your rent? Here are some tips that helped me, and some situations you might find yourself in:
1. Not sure where to start? Do your homework and research what comparable units are renting for in your area. It’s the only way to get an idea of what’s reasonable to ask for. I always start with a number well under market rents (but not something low enough to end the conversation) and negotiate from there.
2. Are you a new tenant about to sign a lease? If so, you should always, always ask to pay less (even if it’s $50 less) before singing your name on the dotted line. Landlords in competitive rental markets expect you to ask. And if they say “no,” you get to decide whether it’s worth living there or not. It’s a win-win.
3. Are you resigning a lease? Be sure to reflect upon your relationship with your landlord — has it been good so far? Is a fruit cake in order? If you’ve proven to be a great tenant, use it as leverage (things like paying on time and obeying simple asks like “no subletting” count). After all, finding trustworthy tenants is a risk for landlords, and if you’re great, you’re worth keeping around. I say, if you’re a model tenant go big or go home (to another apartment) and just ask.
4. Don’t communicate with your landlord or management company much? Asking to pay less and proving that you’re worth it can feel daunting if you feel like your landlord doesn’t even know who the heck you are. Make a list of things you’re willing to do to make your landlord’s life easier, should they resist your request at first. You could take the building trash curb-side so they don’t have to. You could sweep the hallways regularly, or offer a benefit like paying early each month or agreeing to stay put for two years or longer.
5. Still nervous? Write down what you are going to say — keep it to three sentences max. Here’s a script I’ve used before (this is tailored to when the Great Recession hit, but seems worth dusting off for Covid times):
“So, considering [XYZ about the economy] and rents have dropped in the neighborhood, do you have any flexibility in working with me on cheaper rent? I’d like to stay, but if I can find a less expensive apartment, I am exploring that.” Then, you can see if they throw out a number first or if you will (have your number in mind!). The rest is easy because the great thing about numbers is that they are just facts. Not feelings. They’re clear and concise and they make decisions easy.
When I used this script the very first time I asked, my landlord totally went for it and I didn’t even have to go on trash duty. I ended up saving $3,600 per year just by asking.
How much will you save, just by asking a simple question? Let me know in the comments.
