How to Negotiate Lower Rent Payments
Rent payments only ever go up, not down.
In most cases, this is true. Many renters know the unique thrill of getting their lease renewal offer and seeing that the price didn't go up. For most of us, avoiding an increase feels like the best we can do.
But negotiating a lower rent payment is possible. It's not likely, but it is possible. The key is to understand the leverage you have as a renter and when precisely to maximize that leverage. There's no guarantee that your landlord is going to be willing to entertain the idea of lowering your rent, but following these steps can, at the very least, greatly improve your chances.
Be a good tenant
We're talking exclusively about negotiating a lower payment as an existing tenant. While some of these tips may help you negotiate the price on a new apartment, your best asset is often going to be a sterling track record. That means:
- No missed payments
- No complaints (against you, this is)
- No costly damage
- All in all, the kind of tenant that landlords want to have in their property
Every new renter represents some amount of risk. Even with a great credit score and steady income, new tenants can be a mystery box. They may be perfect tenants, or they may trash the place and bail two months into the lease.
Given the option, most landlords would rather keep a tenant they knew and trusted over rolling the dice with a new, unknown tenant. That comfort and lack of risk may even be worth a reduction in rent.
On the other hand, if you're perpetually late with payments and the landlord seems unlikely to miss you when you're gone, you're going to have a very hard time making a case for why you should be paying less in rent.
Understand the market
While the price of rent may seem arbitrary to you, it's usually not. Rent hikes usually align with increases in the market or rising costs associated with owning property or being a landlord.
That said, your rent may not be fully in line with similar properties in your area. Take a look around you. See how much comparable rentals are going for in your area.
If cheaper apartments are available, this gives you a little bit of leverage. Your landlord may be willing to lower rent to match marketing prices. And, if not, you know you have the option to move out and find a more affordable apartment elsewhere.
The aspect of the market is demand. Is your apartment in high demand? Are there empty rooms or units in your building? The easier it is for a landlord to find a new tenant quickly, the less leverage you have. But the opposite is also true: if demand is low and your unit may sit empty for multiple months, your landlord may be more willing to meet your price.
Make your ask during the lease renewal period
The best time to attempt to negotiate a lower rent payment is before signing a lease renewal. This is when you have the most leverage. If you're a good tenant in good standing (and especially if demand is low), your landlord may be more motivated to do more to keep you in the apartment.
The lease renewal period gives both parties the most flexibility to create a new contract with revised terms that suit everyone's needs.
The landlord may want something in exchange for the lower monthly payment, like a longer lease period or a pre-payment for the final two months. As long as those terms work for you, you can hopefully find a middle ground that adds value for both of you.
As always, the mantra for negotiating is, "It never hurts to ask." But asking alone usually isn't enough. So do the research and make sure you're the kind of tenant you'd want to rent to.
Falling behind on rent payments? If you're concerned about losing your home, MMI offers free eviction counseling. Our experts will review your situation and help you create an action plan that puts you in the best position to succeed.