5 tips for negotiating lower rent on a new apartment

Most of us think of the rent on an apartment as a fixed price, especially if you live in an area that’s clearly a landlord’s market, with 100 other potential tenants lined up behind you if you don’t shell out the bucks. But my last landlord, hungry to get a new apartment building full of occupants, showed his hand. I learned from that encounter a few things landlords want that you might not realize are valuable to them. The result? I got a really nice apartment for just a tiny bit more than I’d have paid for a very average one in the same area, and that tiny bit more is averaged out by the fact that my place is all Energy Star, so I’m paying very little on several of my utility bills compared to what I’d pay in most buildings.

It helps to be a desirable tenant, so make sure you look presentable. If you don’t have great credit but you do have a good job, you might want a letter of reference from your employer stating what your salary is and how confident they are in your continued success with them. If you have great credit but not a fantastic job, be prepared to explain confidently how you’re going to pay the rent (the credit history may speak for itself, but it’s good to be ready for anything).

Suggest a two-year lease. If you’re sure you don’t mind staying put that long, some landlords will give you a significant break in your rent price if you’ll commit to it for two years instead of the standard one year. This benefits you, too, because the price can’t possibly go up until the lease expires.
Ask them to throw in utilities. A good approach here is to ask a lot of questions about the utility bills: how much are other tenants paying for electricity, gas, water, anything else not covered? They may offer to pay one or more utilities for you, and because they think it was their idea, they’ll feel like they’re getting the better of the negotiation. If they don’t offer, it still can’t hurt to ask. Let them know you’re balancing not only the rent of this apartment versus others you’ve looked at, but the total expense of living there.
Ask for a free month – or two. Let them know other buildings you’re looking at offer a free month or two as an incentive – they’ll often match this offer to get your name on a lease. (I got three free months.)
Point out price discrepancies in their ads. If they run an ad saying the apartment is $1500 per month, but when you come to see it they start talking about $1600, whip out the ad and show them that price. If they say it’s a typo, tell them tough: the law says they have to honor the ad.
Don’t try to negotiate the security deposit. If buildings in your area charge a security deposit (often one month’s rent or more) so that if you skip out of town after trashing the place one night, they have at least something to start repairs with, I don’t recommend asking them to forego this charge. I have argued when I thought the amount they were charging was ridiculous, but I know I wouldn’t consider renting out an apartment without a security deposit, and someone who asked about skipping it might start to look shady to me. Instead, ask for a free month or two as an incentive – same value without risking the perception that you’re up to something.

There are other expenses related to your apartment that you need to consider. If housing near your work is expensive, consider the cost of a commute. Does the decrease in rent offset the gas and increased car maintenance, not to mention the stress and wasted time of the commute? Can you get an Energy Star apartment, where all the appliances and wiring are engineered to use the least electricity and gas they can? Those savings can really add up – I estimate I save about $100 on utilities compared to other buildings, which offsets the cheaper rent in a building that’s less energy efficient. Also take a look at security: some auto insurers cut you a break if you can say your car is parked in a secured garage or in a gated community. Apartments with secure parking spaces usually cost more than those without, but the extra expense may be offset by insurance savings.

Another great feature to consider is whether the building is within walking or bicycling distance of shops you like. I can do most of my grocery and drug store shopping on foot, which gives me some exercise while saving on gas.

Related posts: