Author Topic: Do you negotiate rent?  (Read 1065 times)

Villanelle

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Do you negotiate rent?
« on: September 28, 2018, 06:08:47 AM »
For the first time in a zillion years, we are going to be in the US rental market very soon.  I'm doing a lot of scouting now to get an idea for areas where we can get at least most of what we want for our budget.  I'm checking out Zillow, Hotpads, etc.

What I'm wondering is whether most landlords (for private rentals And large complexes) generally expect to get asking or if the listed rents are starting point for at least a little negotiation.  As a landlord, we've always gotten asking, but truthfully we'd have taken less and told our PM that.  Just trying to figure out what is typically so I know whether the places that are only a bit over budget might still be worth at least looking at.

(To be clear, we don't move until February so I'm not looking at specific places yet.  Just narrowing neighborhoods around which we will focus our eventual search.)

electriceagle

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Re: Do you negotiate rent?
« Reply #1 on: September 28, 2018, 08:53:06 AM »
Many landlords won't negotiate rent unless they are in an area with a lot of vacancies. Smart folks will set the rent as a function of the median and stick with it on the basis that they don't want the hassle of dealing with someone who can't afford the place.

Maybe its different for large apartment complexes. I don't know.

Jon Bon

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Re: Do you negotiate rent?
« Reply #2 on: September 28, 2018, 08:57:13 AM »
Id say big companies are much less likely too. But I am happy to negotiate rent because usually it gives me an even more advantageous deal. You cant go in and be like yeah I want 20% off rent. But if you offer to mow the lawn and shovel the snow they might be much more likely.

Vacancy of course matters, if I am having a hard time renting it id be more willing to drop the price.


spartana

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Re: Do you negotiate rent?
« Reply #3 on: September 28, 2018, 09:13:43 AM »
It seems common to reduce rents for longer leases. I've seen prices shaved by a couple hundred per month or more for a 2 year lease vs a one year lease or a month to month rental.

Slow2FIRE

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Re: Do you negotiate rent?
« Reply #4 on: September 28, 2018, 05:32:00 PM »
Long leases can get you reductions with "big companies".  For smaller landlords it depends on the person.

If you are renting at the lower end of the market (say ordinary apartments or smaller 2 or 3 bdrm houses) don't expect to be able to haggle at all unless vacancies are high in the area.

If you are renting a luxury house/apartment you can probably negotiate the price unless they have very low vacancy.

monarda

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Re: Do you negotiate rent?
« Reply #5 on: September 29, 2018, 10:47:22 AM »
  don't expect to be able to haggle at all unless vacancies are high in the area.
 

This.
It's an immediate red flag to us if a prospective tenant wants to negotiate. We do quite a bit of research before we decide on a price.

and as was stated here


Vacancy of course matters, if I am having a hard time renting it id be more willing to drop the price.


if there are no bites, the price is probably too high.

Vacancy is VERY low in our town.

Megma

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Re: Do you negotiate rent?
« Reply #6 on: September 29, 2018, 05:20:05 PM »
I've had people try and always said no. I would maybe be open to discussion but only if you were a very solid tenant and I wasn't getting a lot of interest. If you're a marginal tenant tenant, no chance.

I have friends who've gotten free add-ons that big complexes normally charge for included, such as one friend got a garage parking place included that's normally an extra $50. Those little things you could get tossed in.

I would be more likely to be flexible after you've proven yourself a good tenant, like maybe negotiating the increase in year two or a re-lease incentive bc I know you're good. For example, I waived a late fee recently for a guy who paid on time for 2 years and called the day before rent was due to say his check was late bc of some issue and he'd pay on the 6th (5th is late).

cchrissyy

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Re: Do you negotiate rent?
« Reply #7 on: September 29, 2018, 07:49:27 PM »
It's very uncommon in the US and, if your market is strong, just asking will hurt you.
It waves a huge red flag for "I am a pain in the neck" or "I can't quite afford the rent" and if the landlord has anybody else qualified to rent to, they will become much more likely to choose them.

Villanelle

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Re: Do you negotiate rent?
« Reply #8 on: September 30, 2018, 12:58:32 AM »
It's very uncommon in the US and, if your market is strong, just asking will hurt you.
It waves a huge red flag for "I am a pain in the neck" or "I can't quite afford the rent" and if the landlord has anybody else qualified to rent to, they will become much more likely to choose them.

Okay, sounds like we can expect to pay the published rents then.  Thanks!

Dicey

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Re: Do you negotiate rent?
« Reply #9 on: September 30, 2018, 08:38:04 AM »
It seems common to reduce rents for longer leases. I've seen prices shaved by a couple hundred per month or more for a 2 year lease vs a one year lease or a month to month rental.
^This^ I have rentals in a resort area. Tenants frequently offer a three year lease for a slightly reduced rent. I usually say no. Instead, I offer to give them the asking rate for the full three year period. This locks in their rate, which has the same effect. It's kind of a reverse engineered price reduction. It works for everyone because it keeps turnover low and gives the tenant peace of mind that their rents not going to get jacked up annually.

In my experience as a tenant, renting from a private party and being a model tenant meant they often skipped annual rent increases. At the end of ten years, I was paying well below market rate, and they hadn't missed a single month's rent, nor had they had to replace the carpet or paint.

spartana

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Re: Do you negotiate rent?
« Reply #10 on: September 30, 2018, 09:54:53 AM »
It seems common to reduce rents for longer leases. I've seen prices shaved by a couple hundred per month or more for a 2 year lease vs a one year lease or a month to month rental.
^This^ I have rentals in a resort area. Tenants frequently offer a three year lease for a slightly reduced rent. I usually say no. Instead, I offer to give them the asking rate for the full three year period. This locks in their rate, which has the same effect. It's kind of a reverse engineered price reduction. It works for everyone because it keeps turnover low and gives the tenant peace of mind that their rents not going to get jacked up annually.

In my experience as a tenant, renting from a private party and being a model tenant meant they often skipped annual rent increases. At the end of ten years, I was paying well below market rate, and they hadn't missed a single month's rent, nor had they had to replace the carpet or paint.
I live in a resort area also and rent reduction for full time longer term leases are pretty common. Since its a ski town with lots of privately owned second homes rented out as short term vacation rentals or longer term seasonal rentals, you'll see owners who prefer long term tenants over short term or seasonal rentals and they will negotiate for a lower monthly amount.

Laserjet3051

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Re: Do you negotiate rent?
« Reply #11 on: September 30, 2018, 11:42:33 AM »
As a renter, I have always tried to negotiate rent price. Private landlords have always been more amenable to negotiate price, but large public realty companies can/will negotiate under the right circumstance, but it is is much less likely.

I disagree vehemently with the above assertion that negotiating price is not going to happen unless there is high vacancy rates. Here in my part of south OC, vacancy rates is insanely low and renter wars occur when a property becomes listed. Despite that, I have successfully negotiated rent over the past 8 years here with private landlords. It just depends on leverage. A landlord may be willing to conceed a few $s for a renter who is of very high quality with a proven track record of trust and responsible leasing, as opposed to taking a crap shoot with an unknown future tenant, despite all the info one can get with background/credit checks etc..

YMMV

cliner

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Re: Do you negotiate rent?
« Reply #12 on: September 30, 2018, 12:57:36 PM »
The last place I rented I offered a check for 6 months' rent paid in full in exchange for a $50/mo reduction in rent. Not a huge discount, but it was something, and I didn't want to push it to $100 off since it was already a cheap place. The landlord accepted instantly.

For a more expensive place in the $1000+ range, you might be able to got more chopped off. Depends on the landlord of course, but something to consider!

sparkytheop

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Re: Do you negotiate rent?
« Reply #13 on: September 30, 2018, 06:16:52 PM »
My small town has gone crazy with housing and rent prices.  I've seen people ask if rent prices were negotiable, and the response I've seen other than just a simple "no" was "Sure!  How much more would you like to pay?"  So, it may really depend on the area.

Villanelle

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Re: Do you negotiate rent?
« Reply #14 on: October 01, 2018, 09:26:27 PM »
The last place I rented I offered a check for 6 months' rent paid in full in exchange for a $50/mo reduction in rent. Not a huge discount, but it was something, and I didn't want to push it to $100 off since it was already a cheap place. The landlord accepted instantly.

For a more expensive place in the $1000+ range, you might be able to got more chopped off. Depends on the landlord of course, but something to consider!

We are likely to be in the $3000 range!  (And no, these aren't high end properties.  It's just an expensive area--DC metro--and we want an commute that DH can make by bike most days.)

I would definitely be willing to pre-pay for 6 months though.  No problem.  And I'd probably be willing to sign a long lease, but with military renteres (which we are) that's not always of tremendous value because we can legally break a lease if/when receiving orders out of the area.  So a three year lease means we have to stay for three years... unless he gets orders. 

cchrissyy

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Re: Do you negotiate rent?
« Reply #15 on: October 01, 2018, 09:52:34 PM »
yeah I answered above and FWIW, in my area, $1k a month isn't "an expensive place" it's more like "can I use your driveway"

I am both a landlord and renter in this city. The only "discount" I have ever given and received has been a lease that locks in future price increases so that upon annual renewal the rent can't raise as fast as the market normally does. As a tenant it felt like a huge score. My rent can't shoot up! The raises are guaranteed to be very small and manageable. As a landlord it was a relief, one less thing to worry about. Because if all is well with the tenancy and we are renewing then at least I don't have to re-negotiate pricing and wonder about scaring them off and the hassle of advertising and signing somebody else. I know I am leaving some $ on the table but that's only in the case that we mutually agree to renew. If the tenant wasn't good, or if the price was too bad deal for me I don't have to continue.
« Last Edit: October 01, 2018, 10:00:30 PM by cchrissyy »

sanderh

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Re: Do you negotiate rent?
« Reply #16 on: October 01, 2018, 11:11:49 PM »
In the Australian rental market, I have made some lower-than-asking-rent offers as a prospective tenant. In one case, the landlord made a counteroffer that was lower than the asking rent, but higher than what I offered. I turned it down. In other cases, my lower offer was just turned down.

calimom

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Re: Do you negotiate rent?
« Reply #17 on: October 02, 2018, 03:58:58 PM »
The last place I rented I offered a check for 6 months' rent paid in full in exchange for a $50/mo reduction in rent. Not a huge discount, but it was something, and I didn't want to push it to $100 off since it was already a cheap place. The landlord accepted instantly.

For a more expensive place in the $1000+ range, you might be able to got more chopped off. Depends on the landlord of course, but something to consider!

We are likely to be in the $3000 range!  (And no, these aren't high end properties.  It's just an expensive area--DC metro--and we want an commute that DH can make by bike most days.)

I would definitely be willing to pre-pay for 6 months though.  No problem.  And I'd probably be willing to sign a long lease, but with military renteres (which we are) that's not always of tremendous value because we can legally break a lease if/when receiving orders out of the area.  So a three year lease means we have to stay for three years... unless he gets orders.

Obviously a landlord can't legally  discriminate against a military family who might well  break the lease before the end date, but it's hard to imagine a landlord wanting to provide much of a discount in this circumstance. Like anything, it can't hurt to ask.