Are you looking for a reasonable apartment to rent? Do you find it hard to get by with paying the bill? Maybe you would like to save money to have more spending cash and whatnot. The first thing to know is that landlords will always offer high. Although prices will vary from different locations and people, never settle for the price given to you.
If you have already signed a lease, do not worry. It isn’t too late either to lower your renting cost by following the advice given.
Don’t Accept the First Price
Many places put up a very good impression of making rent cost final. This is the first mistake that many people become fooled by. There is no such thing as a “corporate fixed price”, even if your apartment is a chain.
Keep in mind that landlords or the apartment coordinator you deal with never want to give you the lowest cost possible. They stay in business and make profit whenever they’re able to get more out of you. Right now, we’re doing the opposite and getting more out of them. For this reason, never accept the price that they give right away.
Even if the price does seem right, never show that you’re excited about it. Chances are, you will be able to get a reduction if you seem more unhappy about it.
Start Negotiating By Giving a Reasonable Offer
As mentioned above, apartment land owners make money by getting more money out of you. In theory, the price that they give you isn’t ridiculously high profitable, but it isn’t ridiculously low either. Their price is somewhat just about right, but they often increase the price by $30 to $70 dollars more (or even a hundred depending on the location) to give them more profit.
The most important thing you can do is to offer low, but not ridiculously low. It’s best to actually offer the lowest that you’re willing to offer because once accepted, you will no longer be able to propose any further.
Once you give them a negotiation price, they will either accept or decline. If accepted, then congratulation on your skillful negotiation! If they have declined, here is the next precaution to take.
Landlord Who Refuse For a Lower Rent
Once they have decline, they will give you two types of replies:
“That is too low, but I’m willing to give you a lower cost of X amount.”
“I am firm on my price.”
Do not be fooled by both of these answers, especially when they say they are firmed on the cost.
For the first reply given, if the rent seems satisfactory, you may accept the price offered. Generally you may get a few more dollars more cheaper. It won’t hurt you if you don’t, but do not offer anywhere as low as you did the first time.
For landlords who say they are firm on the cost, it is important to note two things.
Stating the Facts
These landlords are very tough to work with. When it comes to negotiating with these types of people, tone is very important due to their inflexibility to pricing cut. They are almost non-negotiable, so you need to provide them some drastic reality facts to make them more willingly to accept.
In order to make your negotiation wanted, make a case where there is an apartment nearby for a few dollars cheaper (even if you don’t think so).
Note: A good backup answer to say why you prefer their apartments over the cheaper place is because of the location. (e.g; closer to school, work, convenience)
Emphasize on the economy situation, such as high unemployment records and foreclosures at record highs. These factors are what fears landlord in keeping their business.
A Second Offering
Once declined, do not offer any much lower than the original pricing that they asked for. Because they say that they are firm, they usually have other tenants waiting in line to rent their apartments.
To get the price that you want, offer just a margin lower of what the original rent cost. You should offer the amount that seems insignificant to where it may not make a difference to them. A good range would be from $5 to $20, or 5% of the cost. It may not be much of a reduction due to their firmness on pricing.
Offer Upfront Money
It always helps to offer to pay landlord in advance. Usually when you pay ahead of time, you should also offer a proposal of a six month (or however long) stay. This saves the trouble of landlords constantly advertising their complex and searching for other tenants to rent their buildings.
A big hassle for them is usually finding new tenants in locations where there is vacancy present. A real estate from Fairfax, Virginina, Don Tepper, says that most landlords prefer to lock in a lease for as long as two years at no more than a one year rate. This helps eliminate the increase pricing in the second year.
Note: Pricing may increase or decrease the second year in the free market. You will still be responsible to pay for the pricing that was agreed on contract.
Those Who Are In The Middle Of a Lease
Depending on your situation, if you are on a lease for rent and obliged by the term, you will not be able to make any negotiation. Once your lease is up, you will be able to submit a proposal. In the mean-time, there are a few things that you can do during this process to have a greater chance of cutting rent cost.
Landlords like people who they know will pay them without being late. Show that you are a good tenant who pays on time and early. This gives them a sense of who you are, and they will be more inclined to do you a favor in the future.
Offering Your Service
One of the most successful negotiators are the ones have something to offer. By giving in exchange, most landlords will be doing the same.
One way to cut cost is to volunteer to be a superintendent of the complex. By offering this service, you will be called for any lawn mowing, gardening, repairs, and any other work required. Depending on how much the deduction is offered, this option is worth finding out for.
When Lease Is Up
When the time comes to decide whether you want to stay or move to another location, this is also the time to start negotiating.
Existing renters should always submit a formal proposal letter asking for a lower rental cost. Hand-written is highly recommended to show personal seriousness.
In your statement, note down that before you leave you would like a lower cost in rent before moving out. A letter compared to this sample one written would be appropriate.
Dear (Landlord’s name),
I am writing this letter in response to my lease that is about to end for next month. I have very much so enjoyed my stay, but unfortunately I cannot afford the pricing as it is.
Although I would love to continue to stay here, it is not possible for me unless there is a reduction in my lease contract. I simply wouldn’t be able to afford the cost in the long run.
Please let me if you are able to cut some cost in my rent. If not, that is fine and it has been a great stay over here.
It would be best if you offered your own pricing. An acceptable range to offer should be 5%-15% lower, depending on how firm you think your landlord is on costs.
Most of the time, landlords will see it more as a costly matter if there is vacancy rather than a reduction in price. Remember that they only stay in business when someone rents out their apartment.