You've been a good tenant and your lease is up for renewal and you would like to negotiate a lower rent. It's not out of the question if you know how to go about it.
When it comes to tenant leases, residents usually feel that the landlord has the upper hand and there is nothing that can be done about the terms of the lease. That is not entirely true. If you approach the landlord with enough information to support your requests, you just might be surprised at the outcome.
When it comes time to renegotiate your tenant lease, keep these tips in mind:
- In today's real estate market, the tenant has more bargaining power. It's a buyers market and many sellers are having a difficult time selling their properties. Rather than have a property sit on the market unsold while they continue to make mortgage payments, many sellers are renting their unsold homes. As a result, there are more apartments available. Whenever there is a surplus, the price goes down. Great news for tenants.
- Find out how much a comparable apartment goes for in your neighborhood. Be sure to compare similar features. Requesting a rent reduction because a studio apartment is much cheaper than your 3 bedroom 2 bath apartment is not a wise choice. Find other 3 bedroom 2 bath apartment with similar square footage and features that cost less than what you're paying. If you're having a difficult time, ask a local realtor if they could help by providing a list of comparable apartments.
- Make a longer commitment. Landlords would prefer not to spend their time and money placing ads in the paper looking for new tenants. If you are willing to accept a long-term tenant lease, you might be able to convince your landlord to shave a few dollars off the rent. The stability of retaining a good tenant with a track record for being reliable is worth the discount.
- If you are paying your own utility bills, analyze them. If your landlord gave an indication as to the approximate cost of the utility bills, compare his estimate with your actual bills. If you have the landlords estimate in writing, even better. If your utility costs far exceed the landlord's estimates, you may have a bargaining tool.
- Improvements and Betterments: Did you paint, install carpeting, change the hardware, install new closet doors or make any substantial improvement to the apartment? If so, you have increased the value of the apartment and can use that as a negotiating point. Be careful, however, if you did not get permission from your landlord prior to making the improvements it might backfire.
Bottom line, landlords want reliable tenants who will take good care of the property. If you have proven to be such, any reputable landlord would be willing to seriously consider modifying your tenant lease and adjust your rent accordingly.
The copyright of the article Tenant Leases in Personal Debt Management is owned by Felicia A. Williams. Permission to republish Tenant Leases must be granted by the author in writing.
