Apartment Renewal Negotiating Tips
Hi,
Received a notice from my apartment complex that my lease is up in July and they want to raise my rent from $10,10 to $1,000.
Given COVID, the recent(January) 2020 Trends report by IRR listing Tampa as having a hyper supply of apartments (I don't agree with that but I'll use it in my argument), and that I'm a cheap POS, I'd like to argue with them and keep my current rental rate.
Has anyone had success negotiating with a larger apartment complex to avoid a rent increase? I feel the facts are in my favor, but something tells me they won't consider it.
I can’t be the only one that just doesn’t even know how to read this
You've got nothing to lose by asking...
Agreed, just ask. I've had some success here with a large complex & company. The Property Manager might grant you something but will probably give you "I would have to ask corporate and that will probably not be granted". Still get them to ask - I would say considering x, y, z I think rent should stay the same, or whatever you'd like.
I have no idea what "$10,10 to $1,000" means, but a good strategy would be to ask about other units available in the same building. Chances are while your unit is targeted for an increase, others have large concessions at this time. One of my best friends just "moved" into a significantly larger unit in the same building, got a month free, and kept his monthly rent the same. This will vary market to market, and management company to management company, but there are options out there.
I’m dumb. I meant to say “$1,010 to $1,100”
$1,100? That's less than half my rent
I need to move
If you can't afford an extra $90 a month, you've got bigger problems than your apartment.
Interesting. Those concessions are all over NYC but they're exclusively for new applicants. Here the premium on a vacant unit will always exceed what you can get out of an existing tenant. Turning over is preferable, even with 6 weeks of vacancy.
Ugly if there's a supply imbalance, aren't there other good options for you to visit, or are you already paying below market rent?
1100 sounds like a dream from what I find in SoCal
Unless you hear gunshots outside...then not so much.
Seconding what CRE said since I have done that as a tenant before.
Sometimes you can target different buckets. like the contract rent increase might still happen, but you can get a concession on parking rent depending on how they are incentivized.
I’m not a corporate landlord, but I have quite a few properties and I’m being pretty understanding with tenants right now. As long as I consider you a good tenant, I’m open to arrangements.
Same - but I think you deal with corporate drones in this situation so it's less straight forward. You have to understand what works for them. Also can you threaten to leave if they increase the rent, and genuinely act on it? If you can't than you have no leverage.
At the moment I am just happy to keep my tenants in - am bleeding cash due to one tenant who cannot pay any longer as his whole cash flows dried up (we are in lockdown so I can't even find a tenant to replace him, so told him to just stay put until this blows over). Another tenant paid in advance to june and left back to his home country - I'll probably give him some cash back as he is begging and he left back to support the military of his home country with the situation. But I can't find anyone to replace him as can't do viewings in lockdown. Have a tenant who is super wealthy I know it, trying to get some rent free - I told him only 1 month in the event that he renews.
I pitty the guys who do short term - so very fucking happy I always did long term otherwise I'd be eating my savings on mortgage payments faster than anything else.
Sounds steep at the company I interned for rents would be raised $30 not $90. And I don't remember exactly on this part but think that good tenants who asked got out of rent raises (at least once).
I don't work in real estate, but I do own a property that I lease out and have been a tenant at probably 8-10 different locations over the last 15 years. My thoughts:
1) They are asking for a 9% increase. Sure, it is only $90/month, but a 9% increase is substantial and I imagine it is above market right now. 2) Finding new tenants, at least where I own, is very challenging right now. People just aren't moving, either because they are afraid or because they can't hire the proper services to do the move. This is a double edged sword because while the property manager is likely to struggle to find new tenants, you're may also going to be challenged to move yourself. My guess is that they are betting on this.
I think the advice above is good. If you really love the place and want to stay, push back. Tell them at a 9% increase in the middle of a global recession / pandemic is way off market. Tell them you want to stay in the $1,000 range and ask them what other units in the building are available at that price point. Consider even indicating/bluffing that you may be looking to move back in with your parents (if this is even a choice). Either way, it definitely doesn't hurt to ask. I think you'll be able to get some sort of concession.
The company I work for is one of the largest apartment managers in the U.S. Our main focus right now is getting rent, not raising it. We've basically stepped back on raising rents.
I have been on a few webinars lately and the main consensus is that they expect rents to decrease about 3% across the board. Stay flat in 2021 and big increase in 2022 to get us back to 2019 levels.
I was able to get my rent brought down $50 a month instead of their initial increase from $2540 to $2640 by committing to a 18 month lease instead of a twelve.
Was last week. Pretty happy with my rent going down to $2490 ha.
Here in DC they proposed a bill that would offer mortgage relief to landlords and they must pass down to tenants. The proposal also says no rent increases if the increase would have taken effect during or was communicated during the crisis.
Yeah I saw Bowser had a thing about that. Do you think they'll enact it?
Probably? They seem to be all onboard with trying to be proactive with the COVID relief. There’s a ton of stuff in the bill though with relief for landlords, tenants, retail, and insurance for the unemployed. It will be interesting to see if it does.
If you counter offer $1050 or even $1000 they might accept what to lose right?
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