Can you really avoid the unavoidable? If you’ve been living in rented apartments, you’re probably familiar with the rent increase letter from your landlord or rental company. Appearing a few months before the end of your lease, this notice of lukewarm tidings will thank you for being a tenant and offer to renew your lease with an increased monthly rent. Often, landlords and rental companies will cite rising maintenance costs, a more difficult local market, or even jump in fuel prices if heat is included in your tab. A spike in your monthly bills due to a rent increase will make your budget tighter, and it may even force you to move if the increase is too dramatic. Depending on your situation, though, you may be able to negotiate with your landlord or rental company to reduce the hike or even avoid the increase altogether. There’s no guarantee you’ll avoid a rent increase, but here are some things to keep in mind when negotiating.
1. First, unless you’re a bad tenant, your rental company probably wants to keep you around. If they’ve offered to renew your lease or extend you on a month-to-month basis, then you know that there are not any major problems with you from their perspective. Although state and local laws vary, you will typically be informed of a rent increase several weeks before you must commit to a new lease at a higher rate. Your current lease may even explain the procedures for lease renewal and increases. Take advantage of any lead time to assemble your case and negotiate. Waiting until the absolute last minute will make avoiding an increase more difficult, and your rental company knows that.
2. Be professional throughout the negotiation process. Although it is important to state your concerns frankly, you should not take an accusatory tone either in speech or writing. Be assertive in your arguments but not so aggressive that they decide you’re a problem tenant after all.
3. Identify all the ways in which you are a good tenant. In trying to avoid a rent increase, it may help to toot your own horn a bit. Remind your landlord or rental company that you have not caused any problems with neighboring tenants or nearby properties. If you have paid your rent on time (or even ahead of time) every single month, then remind them of this fact. Maybe your rental company has a referral program that allows current residents to recommend apartments to friends? If you have “helped” your rental company by bringing them more business, say so. Also, mention any work you have done to improve the apartment. The overall goal with these positive notes is to show them that you are the kind of tenant they don’t want to lose – detail-oriented, responsible, and friendly.
4. If you’ve experienced problems with your apartment, be explicit. Ideally, you have been reporting issues all along so that your claims do not come out of nowhere and surprise anyone. Politely remind your rental company that you have had a disproportionate number of maintenance problems in your home, that you suffered through a rodent incident, that the laundry machines are regularly in disrepair, etc. Whatever the issues were, they should be able to look back in their records and see that you reported problems and offered them the opportunity for resolution. Also, this is a good time to thank your rental company for things they have handled well.
For example, let’s say that you’ve experienced three main problems during the past year: one was a routine maintenance problem with your toilet, one was the appearance of a rat, and one was untidy common areas. You might begin by praising the company for fixing your toilet quickly and without incident. You might also remind them that, although they responded promptly to your report of a rodent, you had to deal with the unpleasantness and uncertainty of an extermination process, questioning your safety and the building’s overall rodent control plan. If the lobby and other common areas are still frequently dirty, you can identify this as an ongoing issue. In other words, go through the whole laundry list of concerns you have had so that your rental company can see that living in your apartment has not been always been a picnic. Praise and critique as necessary.
5. Put the rent increase in terms of a percentage if it makes your case more dramatic. A friend of mine was offered a lease renewal with a jump from $450 to $550. In his argument for avoiding the increase, he reframed the monetary issue. Not only was the hike $100, but it represented a 22.2% increase. Particularly if the rent increase is over 15%, you should put it in these terms. You may wish to draw a comparison between inflation rates and the proposed rent increase to note any marked disparity.
6. Do some research on the rental market in your area. For example, if there is a noticeable condominium boom which is resulting in more home-buyers and fewer renters, then rents should not be increasing significantly. And should lots of other apartment buildings be advertising vacancies and offering rent specials, then remind your rental company how attractive these other offers are. It helps to show that you’ve done some research and to hint that you’re not afraid to move. Remind them that your rent dollars (even at the current, lower rate) are a sure thing, whereas there is always the possibility that the apartment may go unrented for a period of time after you vacate it.
7. Set a firm expectation. If you are beginning the negotiation process by writing a letter, indicate that you would like a call back, an email, or a written response (depending on your time frame). Ask your rental company to reconsider the proposed hike and indicate that you would be inclined to renew your lease if you felt the conditions were more reasonable.
8. See what they offer you! If your current rent is $700 and the proposed increase would take it to $820, perhaps they’ll offer you $775? Although you may not avoid an increase entirely, it’s better to renew at $775 than at $820. For the small amount of time it takes to pull together your argument, write a letter, and make a few phone calls, you might save enough to cover a cable bill or a phone bill.
9. If your rental company does not scrap the increase or make a reduced offer, then turn around and propose one to them. You should be able to state a monthly rent that you are prepared to accept. Although they may not have responded to your first request for a reconsidered rent figure, they may be willing to accept a compromise if you name your price.
10. Take advantage of lease structures. If you really like your apartment and plan to stay there for at least another year, then offer to sign a 12-month lease at a lower rate. If your rental company initially offered a lease renewal for six months, they may be willing to adjust the figure if they know you want to stay for longer. If you’ll sign a year-long lease, they may be willing to take a hit on the rent because your dollars are certain.
Rents are always bound to increase over time, but it doesn’t mean you can’t negotiate to ease your burden. By using these strategies to make a solid case, you may be able to avoid (or at least soften) a rent increase. If your attempts at negotiation fall on deaf ears, then you’re left with the same question you had initially: should I stay or should I go?
