Dear Savvy,
After three years as a coordinator, I finally earned a promotion to manager. With the promotion comes a raise, and thus the opportunity to secure full financial independence from my parents.
Although my dream is to put a down-payment on a house in four years and I know I could save more if I continued to live with my parents (no rent, no groceries), I am eager to try living on my own.
I made my budget and know what I can afford to pay for rent while still being able to save towards a down-payment. My question is, I hear rumors that potential tenants can negotiate with landlords on rent. How does negotiating on rent work? Any tips?
To see my answer, .
Savvy says: You're not in as strong of a position to negotiate rent [1] as an existing tenant with a proven track record of paying on time, and the odds could also be against you because you don't have previous landlords to use as references and vouch for your reliability. These facts don't necessarily preclude the possibility of winning a reduced rent, but expect to push a bit to land on a compromise with your landlord.
The fact that you are employed and earning a steady income is a start, but your credit history will likely be an important factor in determining whether or not you'll be approved as a tenant. I spoke with a real estate pal for her tips on negotiating rent. If none of these circumstances are true in your situation, she says you might as well at least ask your landlord to knock down the rent by $50 (help your case by reinforcing your clean habits).
- Try and find out how long the apartment has been on the market and if the rent has been reduced since its initial listing. If the landlord has been missing out on rent for more than a month (especially if there are multiple vacancies in the building), she may be more open to negotiations.
- If you're signing a six-month lease but planning on staying much longer, ask if your landlord would be willing to drop your rent if you sign a year lease instead.
- Be ready to move in immediately — landlords aren't earning anything on an empty apartment, so if you're ready to pack your things and go they may be more inclined to accept a negotiation.
Source [2]