The rent? It’s too damn high, as I’m sure we can all agree. When I first moved out on my own, my rent equaled precisely 100% of my income. Two months later, I had it down to 80%, and eventually 50%, which is the case for 11 million Americans today. I have a deep distrust of property management companies. This is true even though I have a perfect 25-year track record of always getting my cleaning deposit back. I’m a great tenant with great credit. Even so, I only learned recently that you can negotiate your rent.
I’m not just saying that you can negotiate your rent with a private landlord, such as when you rent a room in a house.
I’m saying that you can even negotiate your rent with a big property management company.
What? How can this be?
The first principle of negotiations is that it’s possible for all parties involved to get the thing they want the most. The act of negotiation itself, when done with skill, can even bring all interested parties closer together. They’ve had a transaction of mutual benefit and demonstrated that it’s a smart idea to talk to one another. A good negotiation sets the stage for further good negotiations.
In the case of rent, the landlord or property manager has the goal of maximizing revenue from the property. This includes keeping reliable tenants in the unit as long as possible, minimizing maintenance and turnover costs. Reliable tenants also displace the unknown quantity of new, unproven tenants. Every month that a reliable tenant occupies the property is a month of income, rather than a month sitting empty with no rent coming in. An empty property is also vulnerable to squatters and vandals.
A tenant obviously has the goal of minimizing rent and utility costs, while living in the nicest neighborhood with the shortest work commute. My position is that many people tolerate conditions or deals that they should not. Skilled negotiation can help the owner or manager to understand that it is in everyone’s best interest to maintain and improve properties and to encourage civil behavior among residents.
By that I mean, neighbors who don’t clean up after their dogs, neighbors who fight on their balcony at 1 AM on a work night, neighbors whose car alarm keeps going off at 7 AM, neighbors who continually blare loud music out their open window, and this list is so far only covering one building in our complex.
It’s like this. If you want me to pay higher rent, I’d better be getting more value from it.
This is what actually happened.
We got an email saying that our lease was coming up in March, and that the rent would be going up $200 a month. Like fun it is! We had the option of renewing for six months, ten months, or month-to-month. Not even a year?
Was this rent increase to be coupled with a property improvement? Say, the removal of the fugly popcorn ceiling? Upgrading the oatmeal shag carpet to, perhaps, bamboo flooring? Putting in an air filter or air conditioning? Free wi-fi? Maybe just refreshing the battered, squealing equipment in the gym?
Haha, no. None of that.
WE are going to charge you MORE RENT, because we can. YOU are getting nothing except for the opportunity to PAY MORE RENT.
The thing is, this is not a fixed, final position.
Even they don’t think it is!
They just increase the rent, again, because they can, and also because most people never question it.
Most people are stuck. They’re either trapped by a mortgage, constrained by lack of savings, or emotionally attached to the neighborhood or their kids’ school or something. People will tolerate absurd commutes, homes that are not energy efficient, obnoxious neighbors, lack of amenities, and all sorts of persistent problems. Why is that?
Why do people hate moving so much? Because they have so much stuff!
My husband and I live in a 680-square-foot apartment. Everything we own fit in 65 boxes in one 20-foot moving van last time, and we’ve gotten rid of quite a bit of stuff since then. Our starting position in these negotiations was that we can simply find a cheaper place with a shorter commute. Pack in three days, move in one day, be completely unpacked in a week.
We’ve got the credit, we’ve got the savings, we’ve got the references. We are totally unafraid of relocating; we’ve already moved six times in our eight years as a married couple.
There’s a funny part to this story. When we got the letter claiming that our rent was going up (no, not if we move away it isn’t), my husband did some research. There were two one-bedroom units in our complex coming up for $500 LESS than what we were CURRENTLY paying! What’s more, the photo in the advertisements was of the unit that we actually occupy right now. Not just a similar unit, a unit with the same floor plan, but the same one!
Just to be cute, we can say at the beginning of the negotiation that we want to pay that rent for the unit we’re in. How about if you go right on ahead and LOWER our rent? We’ll pay the rent you’re advertising and you won’t have to bother vetting a new tenant. How about that?
The property manager claims not to be the decider. She does come back and offer us an increase of only $100, rather than the $200 we were initially shown.
See? It works! You can negotiate your rent!
Or at least, my husband can. I have to give him all the credit for this. I tell him I’ll pack the kitchen. Come on. It might not be saving us $5000 this year, but it will take a lot longer than the negotiating conversation did...
It doesn’t stop there, though. We learned that our building has higher rent than other buildings in the same complex because we supposedly have “a view.” *cough* We have a “peek view.” This means that because we can go to the very edge of our balcony, lean way over, and see a postage-stamp sized glimpse of the ocean, we have the luxury of paying an extra six thousand dollars a year in rent.
Well, forget that.
What we actually do is to apply for, and get, a “junior one bedroom” unit. (Popularly known as a “studio.”) It’s over $400 a month cheaper than what we’ve been paying. The layout and built-in shelving makes it feel larger, even though we’re dropping 70 square feet. The best part is that the new unit is right next to the pool, hot tub, and gym, as well as the nearest park, and it’s even slightly closer to the library, grocery store, bus stop, and post office. For our purposes, we’re getting a better apartment at a better price.
So there you have it. We decided to stay in our overpriced apartment complex because we like the location and because the property managers were willing to entertain our negotiations. If they had not, we would have simply found another place a couple of miles up the road and enjoyed both lower rent and a shorter commute. As of February, we’ll be saving over $400 a month rather than paying an extra $200 (or $100, the first result of negotiations).
We counted it up. The difference between what we will pay vs. the default we would have been charged is a full $8160 a year. This is part of why we 1. Don’t carry consumer debt and 2. Get to go on all these rad vacations. Because we put our financial independence first and because our physical possessions are expendable.
We have a month before our move-in date. We’re not going to bother even thinking about packing for three weeks, not because we’re disorganized or procrastinating, but because we already know how long it takes us to pack. We’ll spend the time hanging out in the hot tub and gloating because we’re such ace minimalists. We’ll also high-five because we’ve already finished one of our New Year’s Resolutions, which was to lower our rent. High five, babe!
How about you? Are you satisfied with all aspects of your current living situation? How about your finances? It’s always good to pause periodically and analyze your circumstances. This is where strategy begins.
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I've been working with chronic disorganization, squalor, and hoarding for over 20 years. I'm also a marathon runner who was diagnosed with fibromyalgia and thyroid disease 17 years ago.